prima plastic annual report - 19-20 inner page...14. the securities and exchange board of india...

ANNUAL REPORT

2019-2020

West Africa

Central America

With the prime focus and the Company's philosophy of improving the society, Prima once again aimed at improving health & child educa�on of the unprivileged sec�on. “Padhega India tabhi to Badhega India”, that's what Prima is commi�ed about, to think of Incredible India and its development into one of the world's fastest growing na�on.

The Company also fulfilled its obliga�on towards armed forces, child care, research programmes and medical treatment etc. by contribu�ng to various implemen�ng agencies in this year.

CSR CONTRIBUTION

PLASTICS LTD.

NEW ARRIVALS

Road Barrier

Ice Box

Race-2

Jawa

CONTENTS Pg No.

Notice 02

Directors’ Report & Annexures 09

Management Discussion & Analysis 28

Corporate Governance Report 32

STANDALONE FINANCIAL STATEMENTS

Independent Auditors’ Report 45

Balance Sheet 52

Statement of Profit & Loss 53

Statement of Change in Equity 54

Cash Flow Statement 55

Notes to the Financial Statements 57

CONSOLIDATED FINANCIAL STATEMENTS

Independent Auditors’ Report 88

Balance Sheet 94

Statement of Profit & Loss 95

Statement of Change in Equity 96

Cash Flow Statement 98

Notes to the Financial Statements 100

CHIEF FINANCIAL OFFICER

Shri Dharmesh R. Sachade

BANKERS

Kotak Mahindra BankCiti Bank N.A.

REGISTRAR & SHARE TRANSFER AGENTS

M/s. Bigshare Services Pvt. Ltd.

CORPORATE OFFICE

41, National House, Opp. Ansa “A” Bldg., Saki-Vihar Road, Powai, Mumbai - 400 072.Tel: 022 28574768 / 69Fax: 022 28572859Email: [email protected]: www.primaplastics.com

REGISTERED OFFICE

98/4, Prima House, Daman Industrial Estate,Kadaiya, Nani Daman, Daman (U.T.), Pin - 396 210Tel: 0260 222 1845 / 0445Tele Fax: 0260 222 1845

BOARD OF DIRECTORS

Shri Bhaskar M. Parekh

Shri Dilip M. Parekh

Shri Mulchand S. Chheda

Shri Krishnakant V. Chitalia

Shri Rasiklal M. Doshi

Smt Hina V. Mehta

Shri Snehal N. Muzoomdar

Shri Shailesh S. Shah

- Executive Chairman

- Managing Director & KMP

- Independent Director (upto October 1, 2019)

- Independent Director


- Non-Executive Director


- Addl. Independent Director (w.e.f November 13, 2019)

COMPANY SECRETARY & COMPLIANCE OFFICER

Ms. Nidhi M. Shah (upto November 30, 2019)Ms. Ankita Agarwal (w.e.f. February 07, 2020)

AUDITORS

M/s. Khimji Kunverji & Co. LLPChartered Accountants

INSIDE THIS REPORT

th26 Annual Report 2019-2020

1

PLASTICS LTD.

CIN:L25206DD1993PLC001470

Scan this QR Code to view annual Report online

Notice is hereby given that the TWENTY SIXTH ANNUAL GENERAL MEETING of the Members of PRIMA PLASTICS LIMITED will be held on Monday September 28, 2020 at 04.00. p.m. through two way Video Conferencing (VC)/ Other Audio Visual Means(OAVM) to transact the following businesses:

ORDINARY BUSINESS:

1. To receive, consider and adopt

(a) the Audited Standalone Financial Statements of the Company for the financial year ended March 31, 2020 together with the Reports of the Board of Directors and the Auditors thereon and;

(b) the Audited Consolidated Financial Statements of the Company for the financial year ended March 31, 2020 together with the Report of Auditors thereon.

2. To confirm the payment of Interim Dividend of ̀ 1.00 per Equity Share (10%) as final dividend for the financial year ended March 31, 2020.

3. To appoint a Director in place of Shri Dilip M Parekh (DIN: 00166385) who retires by rotation and being eligible, offers himself for reappointment.

SPECIAL BUSINESS:

4. Appointment of Shri Shailesh S Shah, as an Independent Director

To consider and, if thought fit, to pass, with or without modification(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to provisions of Section 149, 150 and 152 and all other applicable provisions of the Companies Act, 2013 (“the Act”) and the rules made thereunder, read with Schedule IV of the Act and other applicable Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), (including any statutory modification(s) or re-enactment (s) there of, for the time being in force) Shri Shailesh S. Shah (DIN: 01172073) who was appointed by the Board of Directors as an Additional Independent Director of the Company with effect from November 13, 2019 and who holds office up to the date of this Annual General Meeting in terms of Section 161 of the Companies Act, 2013 and who has submitted the declaration of Independence as provided in the Act and SEBI Listing Regulations, be and is hereby appointed as an Independent Director of the Company to hold office for a term of five consecutive years with effect from November 13, 2019, to November 12, 2024 and whose office shall not henceforth, be liable to retire by rotation.”

NOTES:

1. An explanatory statement pursuant to section 102 of the Companies Act, 2013 (the Act) relating to the special business to be transacted at the Annual General Meeting (AGM) is annexed hereto. The Board of Directors have considered and decided to include Item no. 4 given above as special business in the forthcoming AGM, as it is unavoidable in nature.

2. In view of the continuing COVID-19 pandemic, the Ministry of Corporate Affairs (MCA) has vide its circular dated May 05, 2020 read with circulars dated April 08, 2020 and April 13, 2020 (collectively referred to as the MCA circulars) permitted the holding of the Annual General Meeting (AGM) through VC/OAVM, without the presence of the physical members at a common venue. In compliance with the provisions of the Companies Act, 2013 (the Act), SEBI (LODR) Regulations, 2015 (SEBI Listing Regulations) and MCA circulars, the AGM of the Company is being held through VC/OAVM. The deemed venue for the AGM shall be the Corporate Office of the Company. The procedure for participating in the meeting through VC/OAVM is explained at Note No. 17 below and is also available on the website of the Company www.primaplastics.com

3. As the AGM shall be conducted through VC/OAVM, the facility for appointment of proxy by the members is not available for this AGM and hence the Proxy form and Attendance slip including route map are not annexed to this notice.

NOTICE

Registered Ofce 98/4, Prima House, Daman Industrial Estate,Kadaiya, Nani Daman, Daman (U.T.), Pin - 396 210Tele : 0260-2220445Tele Fax : 0260-2221845Email : [email protected] : www.primaplastics.com

Date: August 20, 2020Place: Mumbai

For and on behalf of the Board of Directors

Bhaskar M. ParekhExecutive Chairman

(DIN – 00166520)

2

PLASTICS LTD.

4. Institutional/Corporate Members are requested to send a scanned copy (.pdf or .jpeg format) of the Board Resolution authorising its representatives to attend the AGM through VC/OAVM on its behalf and to vote through remote e-voting, at [email protected]. The Register of Members and the Share Transfer Books of the Company will remain closed from Tuesday, September 22, 2020 to Monday, September 28,2020 (both days inclusive) for the purpose of AGM.

5. In accordance with, the General Circular dated May 05, 2020, and SEBI circular dated May 12, 2020, Notice of the AGM along with the Annual Report 2019-20 is being sent only through electronic mode to those Members whose email addresses are registered with the Company/Depositories. Members may note that Notice and the Annual Report 2019-20 will also be available on the Company’s website www.primaplastics.com, website of the Stock Exchange at www.bseindia.com and on the website of CDSL www.evotingindia.com.

6. Members attending the AGM through VC/OAVM shall be counted for the purpose of quorum under section 103 of the Act.

7. Members holding shares in physical form and who have not updated their email addresses with the Company are requested to update their email addresses by writing to the Company at [email protected].

8. Members holding shares in dematerialiased form are requested to intimate changes, if any, with their relevant Depository Participants.

9. The relevant details under Regulation 26(4) and Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, (“Listing Regulations)” and Secretarial Standard 2 on General Meetings, is annexed.

10. The Register of Directors and Key Managerial Personnel and their shareholding maintained under section 170 of the Act, the Register of Contracts or arrangements in which Directors are interested under section 189 of the Act and all other documents referred to in the accompanying Notice shall be available for inspection through electronic mode on CDSL portal.

11. Members seeking any information with regard to the accounts or any matter to be placed at the AGM, are requested to the write to the Company through email on [email protected].

12. Members of the Company had approved the appointment of M/s. Khimji Kunverji & Co.LLP, Chartered Accountants as the Statutory Auditors at the 23rd AGM which is valid till 28th AGM of the Company. In accordance with the Act, the appointment of Statutory Auditors is not required to be ratified at every AGM.

13. Members are requested to note that, dividends if not encashed for a consecutive period of 7 years from the date of transfer to Unpaid Dividend Account of the Company, are liable to be transferred to the Investor Education and Protection Fund (IEPF). The share in respect of such unclaimed dividends are also liable to be transferred to the demat account of the IEPF Authority. In view of this, Members are requested to claim their dividends from the Company, within the stipulated timeline. However, shareholders can claim their dividend money & shares by making application to IEPF Authority in web form No. IEPF-5 available on www.iepf.gov.in. The process of claiming such shares & dividend is also provided on our website.

14. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by every participant in securities market. Members holding shares in electronic form are therefore, requested to submit their PAN to their Depository Participants with whom they are maintaining their demat accounts. Members holding shares in physical form, also have to submit their self-attested copy of PAN card to the Company / RTA – Bigshare Services Pvt. Ltd.

Members are also requested to register/update their email address for receiving all communication from Company electronically. Members can avail nomination facility in terms of extant legal provisions in this regard. On request, the necessary Form SH-13 can be obtained from the RTA.

15. Voting Through Electronic Means • Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and

Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 (as amended), and MCA Circulars dated April 08, 2020, April 13, 2020 and May 05, 2020 the Company is providing facility of remote e-voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the Company has entered into an agreement with Central Depository Services (India) Limited (CDSL) for facilitating voting through electronic means, as the authorized e-Voting's agency. The facility of casting votes by a member using remote e-voting as well as the e-voting system on the date of the AGM will be provided by CDSL.

• The Members can join the AGM in the VC/OAVM mode 15 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation at the AGM through VC/OAVM will be made available to atleast 1000 members on first come first served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the AGM without restriction on account of first come first served basis.

• The voting right of shareholders shall be in proportion to their share in the paid up equity capital of the Company as on Monday, September 21, 2020 (cut-off date).


3

• The members who have casted their vote by remote e-voting prior to the AGM may also attend the AGM/participate in the AGM through VC/OAVM but shall not be entitled to cast their vote again.

• The Company has appointed Shri Sadashiv V. Shet (COP. No. 2540) failing him Mrs. Rakhee R. Malkarnekar (COP No. 24139), Practicing Company Secretaries as the Scrutinizer to scrutinise the voting during the AGM and remote e-voting process in a fair and transparent manner.

• The Scrutinizer shall after the conclusion of voting at AGM will first count the votes cast at the meeting and thereafter unblock the votes cast through remote e-voting, in the presence of at least two witnesses not in the employment of the Company and shall submit, not later than 48 hours from the conclusion of the AGM, a consolidated Scrutinizer's Report of total votes cast in favour or against if any, to the Executive Chairman or a person authorized by him in writing, who shall countersign the same and declare the result of the voting forthwith.

• The result declared along with the report of the Scrutinizer shall be placed on the website of the Company www.primaplastics. com as well as on the website of CDSL immediately after the declaration of result by the Executive Chairman or a person authorized by him in writing. The result shall also be immediately forwarded to the Stock Exchange.

The instructions for members voting electronically are as under:

i. The voting period begins on September 25, 2020 at 09.00 a.m. and ends on September 27, 2020 at 05.00 p.m. During this period shareholders' of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date (record date) of September 21, 2020 may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

ii. Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting venue.

iii. Log on to the e-voting website www.evotingindia.com

iv. Click on Shareholders

v. Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID. b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID.

c. Members holding shares in Physical Form should enter Folio Number registered with the Company; or Alternatively, if you are registered for CDSL's EASI/EASIEST e-services, you can log-in at https://www.cdslindia.com from Login-Myeasi using your login credentials. Once you successfully log-in to CDSL's EASI/EASIEST e-services, click on e-Voting option and proceed directly to cast your vote electronically

vi. Next enter the Image Verification as displayed and Click on Login.

vii. If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier voting of any Company, then your existing password is to be used.

viii. If you are a first time user follow the steps given below:

ix. After entering these details appropriately, click on “SUBMIT” tab.

x. Members holding shares in physical form will then reach directly the Company selection screen. However, members holding shares in demat form will now reach 'Password Creation' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

xi. For Members holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.

For Shareholders holding shares in Demat Form and Physical Form

PAN

Dividend Bank Details OR Date of Birth (DOB)

Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders) • Shareholders who have not updated their PAN with the Company/Depository Participant are

requested to use the sequence number sent by Company/RTA or contact Company/RTA.

Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the company records in order to login. • If both the details are not recorded with the depository or company please enter the member id /

folio number in the Dividend Bank details field as mentioned in instruction (v).

4

PLASTICS LTD.

xii. Click on the EVSN for the relevant “PRIMA PLASTICS LIMITED” on which you choose to vote. xiii. On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES / NO” for voting. Select

the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

xiv. Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.

xv. After selecting the resolution, you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL” and accordingly modify your vote.

xvi. Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

xvii. You can also take out print of the voting done by you by clicking on “Click here to print” option on the Voting page.

xviii. If Demat account holder has forgotten the changed password, then enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

xix. Shareholders can also cast their vote using CDSL's mobile app “m-Voting”. The m-Voting app can be downloaded from respective Store. Please follow the instructions as prompted by the mobile app while Remote Voting on your mobile.

16. PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL ADDRESSES ARE NOT REGISTERED WITH THE DEPOSITORIES FOR OBTAINING LOGIN CREDENTIALS FOR E-VOTING FOR THE RESOLUTIONS PROPOSED IN THIS NOTICE:

1. For Physical shareholders- please provide necessary details like Folio No., Name of shareholder, scanned copy of the share

certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to Company/RTA email id.

2. For Demat shareholders -, please provide Demat account detials (CDSL-16 digit beneficiary ID or NSDL-16 digit DPID + CLID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) to Company/RTA email id.

17. INSTRUCTION FOR MEMBERS ATTENDING THE AGM THROUGH VC/OAVM ARE AS UNDER:

1. Shareholder will be provided with a facility to attend the AGM through VC/OAVM through the CDSL e-Voting system. Shareholders may access the same at https://www.evotingindia.com under shareholders/members login by using the remote e-voting credentials. The link for VC/OAVM will be available in shareholder/members login where the EVSN of Company will be displayed.

2. Shareholders are encouraged to join the Meeting through Laptops / IPads for better experience.

3. Further shareholders will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.

4. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.

5. Shareholders who would like to express their views/ask questions during the meeting may register themselves as a speaker by sending their request in advance atleast 7 days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at [email protected]. The shareholders who do not wish to speak during the AGM but have queries may send their queries in advance 7 days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at [email protected]. These queries will be replied to by the company suitably by email.

6. Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting.

18. INSTRUCTIONS FOR SHAREHOLDERS FOR E-VOTING DURING THE AGM ARE AS UNDER:- 1. The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for Remote e-voting.

2. Only those shareholders, who are present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system available during the AGM.


5

3. If any Votes are cast by the shareholders through the e-voting available during the AGM and if the same shareholders have not participated in the meeting through VC/OAVM facility , then the votes cast by such shareholders shall be considered invalid as the facility of e-voting during the meeting is available only to the shareholders attending the meeting.

4. Shareholders who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible to vote at the AGM

(i) Note for Non – Individual Shareholders and Custodians

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and register themselves in the “Corporates” module.

• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [email protected].

• After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on.

• The list of accounts linked in the login should be mailed to [email protected] and on approval of the accounts they would be able to cast their vote.

• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

• Alternatively Non Individual shareholders are required to send the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address viz; [email protected], if they have voted from individual tab & not uploaded same in the CDSL e-voting system for the scrutinizer to verify the same.

• If you have any queries or issues regarding attending AGM & e-Voting from the e-Voting System, you may refer the Frequently Asked Questions (“FAQs”) and e-voting manual available at www.evotingindia.com, under help section or write an email to [email protected] or contact Mr. Nitin Kunder (022-23058738 ) or Mr. Mehboob Lakhani (022-23058543) or Mr. Rakesh Dalvi (022-23058542).





(DIN – 00166520)

6

PLASTICS LTD.

Details of Directors seeking appointment/re-appointment at the Annual General Meeting

Annexure to the Notice

Name of Director

Director Identification No.

Date of Birth

Shri Dilip M. Parekh (Age 52 years)

Shri Shailesh S. Shah(Age 63 years)

00166385 01172073

Date of Joining the Board November 17,1993 November 13, 2019

Qualification B.Com Chartered Accountant, B.Sc

Brief Resume/ Experience Shri. Dilip M. Parekh joined the C o m p a n y ’s B o a r d s i n c e inception as a Director and looking after marketing and administration of the Company. His strong management skill, marketing ability and previous experience in moulded furniture industry for more than twenty-seven years has benefited the Company. He is the person behind putting Prima on global chart by setting up a Joint Venture at Cameroon and S u b s i d i a r y C o m p a n y a t Guatemala He is putting efforts to tap more regions. He is actively involved in forum for Plastic Industries and is member of PLEX Council Of India and Organ i sa t i on f o r P las t i c Processors of India.

Shri. Shailesh S Shah is a P r a c t i c i n g C h a r t e r e d Accountant qualified with B. Sc, FCA, of India and has a wide knowledge in the field of accounting and taxation. He is a senior partner in Khandelwal J a i n & C o . , C h a r t e r e d Accountants since 1998.

Directorship in other public Companies Nil Nil

Memberships/ Chairmanship of Committees in other public Companies Nil Nil

Number of Shares held 2651420 shares Nil

Disclosure of relationship between Directors inter-se NilHe belongs to the promoter group and is brother of Shri. Bhaskar M. Parekh, Executive Chairman and Smt. Hina V. Mehta, Non-Executive Woman Director on the Board of the company.

Details of last drawn remuneration ` 450,000/- per month Only Sitting Fees Paid

Number of Board Meetings held and attended during the year 4 1


7

April 25, 1968 April 15, 1958

The following statement sets out all material facts relating to special business mentioned in the Notice

Item No. 4:

Pursuant to the provisions of Section 161(1) of the Companies Act, 2013 (the Act) and the Articles of Association of the Company, the Board of Directors (the Board) has appointed Shri Shailesh S. Shah as an Additional Director of the Company with effect from November 13, 2019 who would hold office upto the date of the ensuing Annual General Meeting.

As required under section 160 of the Act, a notice has been received from a member signifying its intention to propose the appointment of Shri Shailesh S. Shah as a Director of the Company.

Shri Shailesh S. Shah is a Practicing Chartered Accountant qualified with B. Sc, FCA, of India and has a wide knowledge in the field of accounting and taxation. He is a partner in M/s. Khandelwal Jain & Co., Chartered Accountants since 1998. Brief profile of Shri Shailesh S. Shah as stipulated under Regulation 36(3) of the SEBI Listing Regulations is given as an annexure to this Notice.

Shri Shailesh S. Shah is not disqualified from being appointed as a Director in terms of Section 164 of the Act and has given his consent to act as a Director of the Company. The Company has also received a declaration from Shri Shailesh S. Shah stating that he meets with the criteria of independence as prescribed under sub-section (6) of Section 149 of the Act and SEBI Listing Regulations and he is not debarred from holding the office of director by virtue of any SEBI order or any other such authority.

In the opinion of the Board, Shri Shailesh S. Shah fulfils the conditions for his appointment as an Independent Director as specified in the Act. Keeping in view his expertise and vast knowledge, it will be in the interest of the Company to appoint Shri Shailesh S. Shah as an Independent Director, not liable to retire by rotation. He shall be paid remuneration by way of fee for attending meetings of the Board or Committees thereof or for any other purpose whatsoever as may be decided by the Board, reimbursement of expenses for participating in the Board and other meetings.

Copy of the letter of appointment of Shri Shailesh S. Shah as an Independent Director setting out the terms and conditions is available for inspection by members at the Registered Office of the Company on all working days (Monday to Friday) during business hours, upto the date of the Annual General Meeting.

Except Shri Shailesh S. Shah, none of the other Directors, Key Managerial Personnel of the Company and their relatives are concerned or interested (financially or otherwise), in this resolution.

The Board recommends the Resolution at Item No. 4 of the accompanying Notice for approval by the Members.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013





(DIN – 00166520)

8

PLASTICS LTD.

Dear Members,

thThe Directors have pleasure in presenting the 26 Annual Report and the Audited Financial Statements of the Company's for the financial year ended March 31, 2020.

FINANCIAL PERFORMANCE

OVERVIEW OF COMPANY PERFORMANCE

The highlights of the Company's performance (Standalone) for the year ended March 31, 2020 are as under:

The Company's total income is ̀ 9,975.74 lakhs as compared to previous year ̀ 11,618.44 lakhs. The profit before tax and profit after tax for the year under review amounted to ̀ 231.92 lakhs and ̀ 198.49 lakhs respectively as compared to ̀ 687.16 lakhs and ̀ 546.59 lakhs, in the previous year. The overall sentiment of industry particularly in Plastics manufacturing were down due to fluctuation in Raw Material price and other operating cost and faced de-growth of more than 10% in revenue. The profit of your Company has also impacted due to non-receipt of dividend from its Joint Venture Company, which was otherwise consistent in paying dividend since last few years but skipped this year in an exceptional circumstances in-spite of good performance.

DIRECTORS' REPORT

Particular2019-2020 2018-2019 2019-2020 2018-2019

Standalone Consolidated

(`in Lakhs)

13,291.75

122.88

13,414.63

12,229.64

1,184.99

401.61

254.97

528.41

625.52

1,153.93

204.39

(6.79)

956.33

(22.24)

934.09

5,853.32

6,798.37

6,798.37

220.01

44.79

50.00

6483.57

Revenue from Operation

Other Income

Total Income

Total Expenditure

Profit before Depreciation, Finance Cost and Tax

Less : Depreciation, Amortisation & Impairment

Less : Interest & Finance Cost

Profit before Taxation

Share of Profit/(Loss) of joint Venture

Profit/(Loss) Before Tax

Less : Current Tax

Deferred Tax

Profit after Tax

Other Comprehensive Income (net of tax)

Total Comprehensive Income

Add : Balance b/f from previous year

Balance available for appropriation

Appropriation:

Balance c/f

Less : Proposed Dividend/ Interim Dividend

Less: Dividend Tax

Less : General Reserve

Balance c/f to Balance Sheet

9,872.61

103.13

9,975.74

9242.47

733.27

318.58

182.77

231.92

-

-

67.03

(33.60)

198.49

12.92

211.41

4,225.11

4,427.70

4,427.70

220.01

45.66

50.00

4,112.03

11,139.99

478.45

11,618.44

10,482.36

1,136.08

201.04

247.88

687.16

-

-

147.36

(6.79)

546.59

(3.62)

542.97

3,996.94

4,539.91

4,539.91

220.01

44.79

50.00

4,225.11

12,705.90

21.71

12,727.61

11,431.27

1,296.34

478.89

197.09

620.36

566.89

1,187.25

182.76

(33.60)

1,038.09

48.55

1,086.64

6,483.57

7,498.48

7,498.48

220.01

45.66

50.00

7,182.81


9

Financial Performance (Consolidated)

Joint venture and Subsidiary Companies have performed reasonable well during the year and the Company registered consolidated revenue of `12,705.90 lakhs as compared to `13,291.75 lakhs in the previous year. The consolidated net profit of the Company, Subsidiary and its Joint Venture amounted to `1,038.09 lakhs for the year ended March 31, 2020 as compared to previous year `956.33 Lakhs resulting an improvement in profit margin by more than 8.55%

The consolidated financial statements have been prepared in accordance with section 133 of the Companies Act, 2013 read with rules made thereunder and as required under SEBI listing regulations.

Detailed discussions have been given in the Management Discussion & Analysis Report.

DIVIDEND

Pursuant to the approval of the Board on March 20, 2020, your Company paid an Interim dividend of `1/- per equity share for the FY 2019-20 to the shareholders, who were on the register of members as on March 28, 2020, being the record date. The Board did not recommend a final dividend and the interim dividend declared by the Board was considered as the final dividend for FY 2019-20.

SUBSIDIARY & JOINT VENTURE COMPANIES

As at March 31, 2020, your Company had 1 direct Subsidiary, and 1 Joint venture Company.

A statement containing salient features of the financial statement of Subsidiary/ Joint venture (associate) companies as required under section 129 (3) of the Act, is provided in Form AOC-1 as per Companies (Accounts) Rules, 2014) as Annexure-A to this report. The audited financial statement of subsidiary is available on the website of the Company www.primaplastics.com.

The Board of Directors of the Company had adopted a policy for determining Material Subsidiary Company in line with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Policy is uploaded on the website of the Company www.primaplastics.com.

TRANSFER TO RESERVES

The Company transferred an amount of ̀ 50.00 Lakhs to the General Reserve and an amount of ̀ 4,112.03 Lakhs is proposed to be retained in the Profit and Loss Account.

MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE COMPANY

In March, the Government of India imposed complete lockdown due to the outbreak of COVID-19 pandemic across the country and ordered temporarily shutdown of all non-essential business resulting in temporarily suspension of operations across various locations. This resulted an impact on the Company's business during the second half of the month of March, 2020. Being COIVD-19 is a global pandemic, operations of Subsidiary at Guatemala Latin America have also impacted during this period.

In the view of the management, there are no other material changes or commitments which may affect the financial position of the Company.

SHARE CAPITAL

The Company's paid-up Equity Share Capital as at March 31, 2020 continues to stand at `1,100.05 lakhs consisting of 1,100,0470 equity shares of ̀ 10/- each. During the year, the Company has not issued any shares or convertible securities.

DISCLOSURE RELATING TO BOARD, COMMITTEES AND POLICIES

Directors

In accordance with the provisions of the Act, Shri Dilip M. Parekh, Managing Director, is retiring by rotation at the ensuing Annual General Meeting and is eligible for re-appointment. The Board of Directors on the recommendation of Nomination and Remuneration Committee, has recommended his re-appointment.

10

PLASTICS LTD.

During the year under review, Shri Mulchand S. Chheda resigned from the office of Independent Director w.e.f October 1, 2019 due to his health reason. The Board appreciates valuable contribution made by Shri Mulchand S Chheda during his tenure as Director of the Company.

Pursuant to the provisions of Companies Act, 2013 and the applicable provisions of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and based on the recommendation of the Nomination & Remuneration Committee, the Board of Directors had appointed Shri Shailesh S. Shah, as an Additional Independent Director on November 13, 2019 and who holds office upto the ensuing AGM, a resolution seeking shareholders' approval for his appointment forms part of the Notice.

Further, the shareholders at the 25th AGM held on August 03, 2019, appointed Shri Snehal N. Muzoomdar as an Independent Director for a term of 5 years w.e.f. January 29, 2019 and re-appointed Shri Krishnakant V. Chitalia, Shri Rasiklal M. Doshi as Independent Directors for a further period of five years w.e.f. August 03, 2019. The shareholders also reappointed Shri Bhaskar M. Parekh, Executive Chairman and Shri Dilip M. Parekh, Managing Director for a further period of three years effective September 01, 2019.

The committee has received declaration from all the Independent Directors of the Company confirming that they meet the criteria of Independence under section 149 of the Companies Act, 2013 and the Listing Regulations. Further Company has also taken declaration complying various codes and policies applicable to Directors. The Independent Directors of the Company have registered themselves with “the Indian Institute of Corporate Affairs” (IICA) as required under rule 6 of Companies (Appointment & Qualification of Directors) Rule 2014.

The Company’s Remuneration Policy for Directors, Key Managerial Personnel and other employees is available on the website of the Company at http://www.primaplastics.com/uploads/codes_policies/policy-on-remuneration-of-directors-and-key-managwerial-personnel.pdf.

Key Managerial Personnel (KMP)

Pursuant to the provisions of Section 203 of the Act, the Key Managerial Personnel of the Company as on March 31, 2020 are Shri Dilip M. Parekh, Managing Director, Shri Dharmesh R. Sachade, Chief Financial Officer and Ms. Ankita Agarwal, Company Secretary & Compliance Officer.

During the year, Ms. Nidhi M. Shah resigned from the post of Company Secretary w.e.f November 30, 2019 and Ms. Ankita Agarwal was appointed as Company Secretary w.e.f February 07, 2020.

Board Meetings

The Board of Directors met 4 times during financial year 2019-20. The details of the meetings and the attendance of the Directors are detailed in the Corporate Governance Report.

Committees:

The various Committees of the Company are Audit Committee, Nomination and Remuneration Committee, Management Committee, Share Transfer Committee, Stakeholders' Relationship Committee, Internal Complaints Committee and CSR Committee. The composition, terms of reference, numbers of meetings of the Committees are given in the Corporate Governance Report.

BOARD EVALUATION

The Board carried out an annual performance evaluation of its own performance and that of its committees and independent directors as per the formal mechanism for such evaluation adopted by the Board. The performance evaluation of the Chairman, the Non-Independent Directors and the Board as a whole was carried out by the Independent Directors. The exercise of performance evaluation was carried out through a structured evaluation process covering various criteria as recommended by the Nomination and Remuneration Committee.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors states that:


11

a) In the preparation of the annual accounts, the applicable accounting standards have been followed and there has been no material departure;

b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2020 and of the profit of the Company for the year ended on that date;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the Annual Accounts on a going concern basis;

e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

INTERNAL FINANCIAL CONTROLS

The Board has laid down adequate internal financial control procedures which commensurate with its size and nature of business, including adherence to the Company's policies, safeguarding of its assets, prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures. The details of adequacy of Internal Financial Controls are given in Management Discussion and Analysis Report, which forms part of this report.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the Annual Report.

CORPORATE GOVERNANCE

The Company is committed to maintain the highest standards of Corporate Governance and believes in adopting best practices of Corporate Governance. The report on Corporate Governance as stipulated under the SEBI Listing Regulations together with a certificate from the Secretarial Auditors of the Company confirming compliance with the conditions of Corporate Governance forms part of the Report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Particulars of loans, guarantees and investments as per section 186 of the Act, have been disclosed in the notes to the standalone financial statements.

CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All contracts or transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis. During the year, the Company had not entered into any contract/arrangement/ transactions which is required to be reported in Form No. AOC-2 in terms of Section 134(3)(h) read with section 188 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014. The policy on materiality of related party transactions as approved by the board may be accessed on Company’s website www.primaplastics.com. In accordance with IND-AS-24, the related party transactions are also disclosed in the notes to the standalone financial statements.

AUDITORS & AUDITORS' REPORT

Statutory Auditors

At the 23rd AGM held on August 12, 2017, M/s. Khimji Kunverji & Co. LLP, Chartered Accountants (Firm Registration No. 105146W/W-100621) were appointed as Statutory Auditors for a term of 5 (five) consecutive years. The Auditors have confirmed that they are not disqualified from continuing as Auditors of the Company.

Further the notes on the Financial Statements referred to in the Auditors' Report are self-explanatory and do not call for any further comments. The Auditors' Report does not contain any qualification, reservation, adverse remark or disclaimer.During the year, no fraud has been reported by the Auditors to the Audit Committee under Section 143(12) of the Companies Act, 2013.

12

PLASTICS LTD.

Secretarial Auditor

The Board of Directors had appointed Shri Sadashiv V. Shet, Practicing Company Secretary, to undertake the Secretarial Audit of the Company for the financial year 2019-20. The Secretarial Audit Report for the financial year ended March 31, 2020 pursuant to the provisions of Section 204 of the Companies Act, 2013 is annexed herewith this report as Annexure - B. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

COST AUDIT

The maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is presently not applicable to the Company.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT - 9 is annexed herewith as Annexure - C. The same is also available on the website of the Company at http://www.primaplastics.com/annual-report.php.

RISK MANAGEMENT

The Board of Directors have framed a Risk Management Policy for identification of elements of risk if any, which in the opinion of the Board may threaten the existence of the Company and is designed to identify, assess and frame a response to threats that affect the achievement of its objectives.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In accordance with the provisions of section 135 of the Companies Act, 2013 and the rules made thereunder, your Company has constituted Corporate Social Responsibility Committee of Directors. The role of the Committee is to review and monitor CSR activities of the Company and recommends to the Board the amount to be spent on CSR annually.

The Company continued its philosophy of improving the society by keeping its focus on health, child education, environment and communities. The CSR policy, formulated by CSR Committee and approved by the Board can be accessed at http://www.primaplastics.com/uploads/codes_policies/csr-policy-of-ppl.pdf. During the year under review, the Company spent `1,735,000/-on CSR activities through various implementing agencies. A brief report on CSR activities undertaken during the year, as required under Section 135 of the Companies Act, 2013, is annexed as Annexure – D to this Report.

PARTICULARS OF EMPLOYEES

During the year, there was no employee in receipt of remuneration as prescribed in the Rule 5 (2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The prescribed particulars of employees as required under Section 197 (12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure–E to this Report.

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMAN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013An Internal Complaints Committee has been constituted by the Company in line with the provisions of Sexual harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Company has not received any complaints of sexual harassment.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, is annexed herewith as Annexure–F to this report.

VIGIL MECHANISM

The Company has a Whistle Blower Policy and has established the necessary vigil mechanism for directors and employees in accordance with the provisions of the Act and Listing Regulations, to report concerns about unethical behaviour. The Whistle Blower Policy is put on the Company’s website and can be accessed at http://www.primaplastics.com/uploads/codes_policies/whistle-blower-policy.pdf


13

COMPLIANCE WITH SECRETARIAL STANDARDS

During the financial year, your Company has complied with applicable Secretarial Standards issued by Institute of Company Secretaries of India.

GENERAL DISCLOSURES

Your Directors' state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

a. Issue of equity shares with differential rights as to dividend or voting or otherwise.

b. Issue of shares (sweat equity shares) to employees of the Company under ESOS.

c. Details relating to deposits covered under chapter V of the Act.

d. Neither the Managing Director nor the Whole Time Director of the Company received any remuneration or commission from any of its subsidiary.

e. No significant material orders were passed by the Regulators or Courts or Tribunals which impacts the going concern status and Company operations in the future.

f. There has been no change in the nature of business of the Company.

ACKNOWLEDGEMENT

The Directors wish to convey their gratitude and appreciation to all of the employees of the Company for the commitment and effort put in by them. The Directors would also like to thank the shareholders, customers, dealers, suppliers, bankers, government and all other business associates for their continued support given by them to the Company and the Management.

Date: June 29, 2020Place: Mumbai



(DIN – 00166520)

14

PLASTICS LTD.

(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the financial statement of Subsidiaries/Joint Venture companies

Part “A”: Subsidiary

1. Names of subsidiaries which are yet to commence operations: NIL2. Names of subsidiaries which have been liquidated or sold during the year: NIL.

Part “B”: Joint Venture

1. Names of associates or joint ventures which are yet to commence operations: NIL2. Names of associates or joint ventures which have been liquidated or sold during the year: NIL

Dharmesh R. Sachade Ankita Agarwal Bhaskar M. Parekh Dilip M. ParekhChief Financial Officer Company Secretary Executive Chairman Managing DirectorM. No. 139349 M. No. A31851 DIN No. 00166520 DIN No. 00166385

ANNEXURE - A TO THE DIRECTORS' REPORTForm AOC-1

Name of Subsidiary Prima Union Plasticos S.A.

1. Reporting period for the subsidiary concerned

2. Reporting currency and Exchange rates for the financial year

3. Share Capital

4. Reserves and Surplus

5. Total Assets

6. Total Liabilities

7. Investments

8. Turnover

9. Profit (Loss) before taxation

10. Provision for taxation

11. Profit after taxation

12. Proposed Dividend

13. Extent of shareholding (In percentage)

March 31, 2020

Guatemala Quetzal

Closing Rate

1 Qtz = ` 9.74

` 355.70 Lakhs

` 129.45 Lakhs

` 1,776.04 Lakhs

` 1,290.89 Lakhs

NIL

` 2,826.63 Lakhs

` 388.44 Lakhs

` (115.73) Lakhs

` 272.71 Lakhs

NIL

90%

Average rate

1 Qtz = ` 9.37

Name of Joint Venture Prima Dee-Lite Plastics S.A.R.L.

1. Last audited Balance Sheet Date

2. Share of Joint Venture held by the Company on the year end

3. Amount of Investment in Joint Venture

4. Extent of holding (In percentage)

5. Description of how there is significant influence

6. Reason why the joint venture is not consolidated

7. Net worth attributable to shareholding as per latest Audited Balance Sheet

8. Profit/Loss for the year

i. Considered in Consolidation

ii. Not Considered in Consolidation

December 31, 2019

16,100 Shares

` 102.07 Lakhs

50%

Due to equity holding in Joint Venture

N.A.

� 3,117.28 Lakhs

` 566.89 Lakhs

NIL


15

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED MARCH 31 , 2020

[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,The Members,Prima Plastics Limited98/4, Prima House, Daman Industrial EstateKadaiya, Nani Daman - 396210

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by PRIMA PLASTICS LIMITED, (hereinafter called the “company”). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the PRIMA PLASTICS LIMITED'S books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering the financial year ended on March 31, 2020, complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31, 2020 and according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act'):-

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999; ………….Not applicable to the Company during the Audit Period.

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities), 2008; ………….Not applicable to the Company during the Audit Period.

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; ………….Not applicable to the Company during the Audit Period.

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 ; ………….Not applicable to the

Company during the Audit Period.

(vi) Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

ANNEXURE - B TO THE DIRECTORS' REPORTFORM NO. MR- 3

16

PLASTICS LTD.

The following other Laws applicable specifically to the Company are:

1. The Water (Prevention and Control of Pollution) Act, 1974 & The Water (Prevention and Control of Pollution) Cess Rules, 1975 2. The Air (Prevention and Control of Pollution) Act, 1981 3. The Environment (Protection Act, 1986 & the Environment (Protection) Rules 1986 4. The Noise Pollution (Regulation and Control) Rules 2000; 5. Legal Metrology Act, 2009. 6. Provisions related to unfair or restrictive trade practices of the Monopolies and Restrictive Trade Practices Act, 1969. 7. Standard Weights and Measure Act, 1976; 8. Trademarks Act, 1999.

I further report that, based on the information provided by the Company, its officers, authorised representatives during the conduct of the audit and also on the review of quarterly compliance report by the respective departmental heads / Company Secretary / Executive Director/ Internal Auditor, taken on record by the Board of Directors of the Company, in my opinion, adequate systems and processes and control mechanism exist in the Company to monitor compliance with applicable general laws.

I further report that the Compliance by the Company of applicable Financial laws like Direct & Indirect tax laws, Service tax and others detailed under Tax Legislations, have not been reviewed and I have relied on the representations made by the Company, its Officers and Reports issued by the Statutory Auditors.

I have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India.

(ii) The Listing Agreements entered into by the Company with BSE Limited read with the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations 2015.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

I further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Ms. Nidhi Shah, Company Secretary resigned on November 30, 2019 and Ms. Ankita Agarwal was appointed as Company Secretary on February 07, 2020.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

As per the minutes of the Board duly recorded and signed by Chairman, the decisions of the Board were unanimous and no dissenting views have been recorded.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the audit period there are no instances of major bearing on the company's affairs in pursuance of the laws, rules, regulations, guidelines, standards, etc. during the year under review.

Date: June 29, 2020Place : Panaji- Goa

Sadashiv V Shet Practicing Company Secretary C P No.: 2540; FCS No.:2477

UDIN: F002477B000393001


17

EXTRACT OF ANNUAL RETURNfor the financial year ended on March 31, 2020

[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10% or more of the total turnover of the Company shall be stated: -

III. PARTICULARS OF HOLDING, SUBSIDIARY AND JOINT VENTURE COMPANIES

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) (i) Category-wise Share Holding.

ANNEXURE - C TO THE DIRECTORS' REPORTFORM NO. MGT-9

L25206DD1993PLC001470

November 17, 1993

Prima Plastics Limited

Public Company Limited by Shares - Manufacturing

98/4, Prima House, Daman Industrial Estate, Kadaiya, Nani Daman, Daman (U.T.), Pin - 396 210.Tel. No.0260-222 0445, Email: [email protected]: www.primaplastics.com

Yes

M/s. Bigshare Services Pvt. Ltd., 1st Floor, Bharat Tin Works Bldg, Opp. Vasant Oasis, Makwana Road, Marol, Andheri (E), Mumbai 400059 Tel. No. 022 62638200, Fax: 022 62638299 Email: [email protected], Website: www.bigshareonline.com

i)

ii)

iii)

iv)

v)

vi)

vii)

CIN

Registration Date

Name of the Company

Category / Sub-Category of the Company

Address of the Registered Office and Contact Details

Whether listed Company

Name, Address and Contact Details of Registrar and

Transfer Agent, if any

Sl.

No.Name and Description of main Products / Services

NIC Code of the

Product/Services

% to total turnover of

the Company

Manufacturing of Plastic Products1 22209 100%

Sl.

No.Name and Address of the Company

Prima Union Plasticos S.A.

Diagonal 3 Calzada Atanasio Tzul,

43-15, Zona 12, Guatemala, Central America

1

CIN/GLN/IN % of Shares

held

- 2(87)

Holding/Subsidiary/

Joint Venture

Applicable

Section

Subsidiary 90%

Prima Dee-Lite Plastics S.A.R.L.

BP. 5 488 Douala, Cameroon, West Africa

2 - 2(6)Joint Venture 50%

Category of

Shareholders

No. of Shares held at the

beginning of the year

No. of Shares held at the end of the year % Changeduring the

year

Demat Physical Total % ofTotal

Shares

% ofTotal

Shares

TotalPhysicalDemat

A. Promoters

1. Indian

Individuals/HUF

Sub Total(A)(1)

6432504

6432504

-

-

6432504 58.47

6432504 58.47

58.47

58.47

6432504

6432504

-

-

6432504

6432504

18

PLASTICS LTD.

Category of

Shareholders

No. of Shares held at the

beginning of the year

No. of Shares held at the end of the year % Changeduring the

year

Demat Physical Total % ofTotal

Shares

% ofTotal

Shares

TotalPhysicalDemat

2.Foreign

Sub-Total(A)(2)

Total Shareholding

of Promoter

(A)=(A)(1)+(A)(2)

(B)Public

Shareholding

1.Institutions

Central/State

Governments

Mutual Funds

Foreign Portfolio

Investors

Financial Institution/

Banks

FIIs

Sub-Total (B)(1)

2. Non-Institutions

Bodies Corporate -

Indian

Individual

shareholders

holding nominal

share capital up to

`1 lakhs

Individual

shareholders

holding nominal

share capital in

excess of `1 lakhs

Hindu Undivided

Family

Trusts

Clearing Member

IEPF

Director or Director’s

Relative

Non Resident Indian

Sub-Total (B)(2)

Total Public

Shareholding

(B)=(B)(1)+(B)(2)

C. Shares held

by Custodian for

GDRs & ADRs

Grand Total

(A)+(B)+(C)

--

6432504

-

--

--

-

--

--

-

261108

2041365

1314095

123922

50

88418

171024

19750

247744

4267476

4267476

--

10699980

--

--

-

--

--

-

--

--

-

3600

233590

-

--

-

--

--

--

63300

300490

300490

-

300490

--

6432504

-

--

--

-

--

--

-

264708

2274955

1314095

123922

--

88418

171024

19750

311044

4567966

4237172

--

11000470

--

58.47

-

--

--

-

--

--

-

2.41

20.68

11.95

1.13

50

0.80

1.55

0.18

2.83

41.53

41.53

--

100.00

--

6432504

-

--

--

-

--

--

--

541256

1986463

1104437

146887

-

47289

185874

19167

275038

4306411

4306411

--

10738915

--

--

-

--

--

-

--

--

--

3600

201755

--

--

--

--

--

--

56200

261555

261555

--

261555

--

6432504

-

--

--

-

--

--

--

544856

2188218

1104437

146887

-

47289

185874

19167

331238

4567966

4567966

--

11000470

--

58.47

-

--

--

-

--

--

--

4.95

19.89

10.04

1.34

--

0.43

1.69

0.17

3.01

41.53

41.53

--

100.00

--

-

-

--

--

-

--

--

-

2.55

(0.79)

(1.91)

0.21

(0.00)

(0.37)

0.13

(0.01)

0.18

--

--

--

--


19

Sl.No.

Shareholder's Name Shareholding at the beginning ofthe year

Shareholding at the end of the year% change inShareholding

during theyear

No. ofShares

% of totalSharesof the

Company

% of SharesPledged/Encumbered

No. ofShares

% of totalSharesof the

Company

% of SharesPledged/Encumbered

Dilip Manharlal Parekh

Bhaskar Manharlal

Parekh

Madhavi Dilip Parekh

Shashikala Manharlal

Parekh

Chhaya Bhaskar Parekh

Shashikala M. Parekh

Pratik Bhaskar Parekh

Nitika B. Tolia

Pratik Bhaskar Parekh

Shashikala M. Parekh

Charmi P. Parekh

Mehta Vijay Mansukhlal

Hina V. Mehta

Paras B. Parekh

1

2

3

4

5

6

7

8

9

10

11

12

13

14

2615420

2551610

406530

353810

216711

114000

83300

40352

31800

18600

250

10

101

10

23.78

23.20

3.70

3.22

1.97

1.04

0.76

0.37

0.29

0.17

-

--

--

--

–

--

--

--

--

--

--

--

--

--

--

--

--

–

2615420

2551610

406530

353810

216711

114000

83300

40352

31800

18600

250

10

101

10

23.78

23.20

3.70

3.22

1.97

1.04

0.76

0.37

0.29

0.17

--

--

--

--

–

--

--

--

--

--

--

--

--

--

--

--

--

–

–

--

--

--

--

--

--

--

--

--

--

--

--

–

(ii) Shareholding of Promoters

Sl.No.

Name Shareholding at thebeginning of the year

Cumulative Shareholdingduring the year

No. of Shares % of TotalShares of the

Company

% of TotalShares of the

Company

No. of Shares

At the beginning of the year i.e. as at 01-04-2019

At the end of the year i.e. 31-03-2020

1

2No change during the year

(iii) Change in Promoters' Shareholding (please specify, if there is no change)

Note : The Details of holding has been clubbed based on Pan

Sl.No.

Name Shareholding at thebeginning of the year

Cumulative Shareholdingduring the year

Shareholding at theend of the year

No. of Shares

% of TotalSharesof the

Company


Company


Company

No. of Shares

No. of Shares

S. Shyam

Ithoughtwealth Analytics LLP

Dheeraj Kumar Lohia

Sangeetha S

Subramanian P

Ojas Consulting Pvt. Ltd.

Sunil Agarwal

Punit Shailesh Bhuptani

IL & FS Securities Services Limited

Prashant Dubey

Jyotivardhan Jaipuria

Niranjan Sridhar

Pioneer Holdings Pvt. Ltd.

1

2

3

4

5

6

7

8

9

10

11

12

13

344064

84248

141478

-

188890

-

92635

88338

64000

35500

48000

45000

40000

3.13

0.77

1.29

-

1.72

-

0.84

0.80

0.58

0.32

0.44

0.41

0.36

(344064)

184947

56356

188890

(188890)

136812

4745

(19185)

(64000)

15338

--

–

–

(3.13)

1.68

0.51

1.72

(1.72)

1.24

0.05

(0.17)

(0.58)

0.14

--

--

--

-

269195

197834

188890

-

136812

97380

69153

-

50838

48000

45000

40000

-

2.45

1.80

1.72

-

1.24

0.89

0.63

-

0.46

0.44

0.41

0.36

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

20

PLASTICS LTD.

(v) Shareholding of Directors and Key Managerial Personnel:

V.INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment.

Sl.No.

Particulars SecuredLoans

excludingdeposits

UnsecuredLoans

Deposits TotalIndebtedness

(`)

Indebtedness at the beginning of the nancial

year.

Principal Amount

Interest due but not paid

Interest accrued but not due

Total (i+ii+iii)

Change in Indebtedness during the nancial

year

Addition

Reduction

Net Change

Indebtedness at the end of the nancial year

Principal Amount

Interest due but not paid

Interest accrued but not due

Total (i+ii+iii)

i)

ii)

iii)

308,401,332

NIL

1,124,679

309,526,011

NIL

104,035,892

204,950,056

NIL

540,063

205,490,119

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

308,401,332

NIL

1,124,679

309,526,011

NIL

104,035,892

204,950,056

NIL

540,063

205,490,119

Sl.No.

Name Shareholding at thebeginning of the year as at

01-04-2019

Cumulative Shareholding during 01-04-2019 to

31-03-2020

Shareholding at theend of the year as at

31-03-2020

No. of Shares


Company


Company


Company

No. of Shares

No. of Shares

Dilip Manharlal Parekh

Bhaskar Manharlal Parekh

Mulchand S. Chheda

Krishnakant V. Chitalia

Rasiklal M. Doshi

Hina V. Mehta

Snehal Muzoomdar

Shailesh S. Shah

Dharmesh R. Sachade

Nidhi M. Shah

Ankita Agarwal

1

2

3

4

5

6

7

8

9

10

11

2615420

2551610

--

5500

3500

101

--

--

--

–

--

23.78

23.20

--

0.05

0.03

--

--

--

--

–

--

–

--

--

--

--

--

--

--

--

--

--

2615420

2551610

--

5500

3500

101

--

--

--

–

--

23.78

23.20

--

0.05

0.03

--

--

--

--

–

--

–

--

--

--

--

--

--

--

--

–

--


21

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL. A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

B. Remuneration to other directors

* Resigned w.e.f. October 1, 2019 # Appointed w.e.f. November 13, 2019

Sl.No.

Particulars of Remuneration Name of MD/WTD/Manager

Dilip M. Parekh Bhaskar M. Parekh

Total Amount

(`)

Gross salary (a) Salary (b) Value of Perquisites

(c) Profits in lieu of salary

Stock Option

Sweat Equity

Commission- as % of profit- others, specify.

Total (A)

Ceiling as per the Act

6,314,795

NIL

NIL

NIL

NIL

NIL

6,314,795

8,400,000

6,314,795

NIL

NIL

NIL

NIL

NIL

6,314,795

8,400,000

12,629,590

NIL

NIL

NIL

NIL

NIL

12,629,590

16,800,000

1

2

3

4

Sl.No.

Particulars of Remuneration Name of Directors

Total Amount

(`)

K. V. Chitalia

M. S.Chheda*

R. M.Doshi

Hina V. Mehta

Snehal N. Muzoomdar

Shailesh S.Shah#

Independent Directors

Fee for attending for board /committee meetings.

Commission

Others, please specify.

Total (1)

Other Non-Executive Directors

Fee for attending Committeemeetings

Commission

Others, please specify

Total (2)

Total (B)=(1+2)

Total Managerial Remuneration

Overall Ceiling as per the Act.

1

2

110,000

Nil

Nil

27,500

Nil

Nil

N.A.

N.A.

N.A.

102,500

Nil

Nil

27,500

Nil

Nil

347,500

Nil

Nil

80,000

Nil

Nil

110,000 27,500 80,000

80,000

102,500 27,500 347,000

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

80,000

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

80,000

Nil

Nil

Nil Nil Nil Nil Nil 80,000

110,000 27,500 80,000 80,000 102,500 27,500 427,500

427,500

N.A. N.A. N.A. N.A. N.A. N.A. N.A.

22

PLASTICS LTD.

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

# Resigned w.e.f. November 30, 2019 *Appointed w.e.f. February 07, 2020

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCE: No penalties / punishment / compounding of offence were levied under the Companies Act, 2013.

Sl.No.

Particulars of Remuneration Name of Key Managerial Personnel

Dharmesh R.Sachade

CFO

Nidhi M. Shah- CS#

Ankita Agarwal-CS*

Total Amount

Gross Salary

(a) Salary as per provisions contained in section 17 (1) of the Income Tax Act 1961

(b) Value of Perquisites under section 17 (2) of the Income Tax Act 1961

(c) Profits in lieu of salary under section 17 (2) of the Income Tax Act 1961

Stock Option

Sweat Equity

Commission- as % of profit- others, specify.

Total (A)

2,406,638

NIL

NIL

365,671

NIL

NIL

71,630

NIL

NIL

2,843,939

NIL

NIL

NIL

NIL

NIL

2,406,638

NIL NIL NIL

NIL NIL NIL

NIL NIL NIL

365,671 71,630 2,843,939




(DIN – 00166520)

(`)


23

for the nancial year ended on March 31, 2020

REPORT ON CORPORATE SOCIAL RESPONSIBILITY

1. A brief outline of the Company's CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs.

CSR policy of the Company is based on the Company's philosophy for fulfilling its responsibility and undertaking programmes like providing education, healthcare facilities and to contribute towards economy and development of the community at large. The Company's CSR Policy is disclosed on the website of the Company at www.primaplastics.com.

2. Composition of the CSR Committee:

3. Average Net prot for the last 3 Financial years: ̀ 64,980,157/-

4. Prescribed CSR expenditure (2% of item no. 3 above): `1,299,604/-

5. Details of CSR Spending during the nancial year:a) Total amount to be spent for the Financial year : `1,734,104/-

(including `434,500/- Amount unspent of FY 2018-19) b) Amount unspent, if any: Nilc) Manner in which amount is spent during the Financial year is detailed below:

Note * Details of implementing Agencies: The Indian Planetary Society, Indian Red Cross Society, Akshargyan Charitable Trust, Cancer Charity Trust, PNR Society, Tata Memorial Hospital, Balasha Trust, Nana Palkar Society, Shiksha Seva Foundation, Bharat Ke Veer.

ANNEXURE - D TO THE DIRECTORS' REPORT

CSR Project or Activity identied

Sector in whichproject or activity is covered

(Schedule VII)

Project or ProgramsLocal area or Other

area Specify theStates & Districtswhere the projectwas under taken

Amount outlay(budget) – project or

program wise

Amount spent onthe projects orprogram wise

Cumulativeexpenditure upto

the reporting period

Amount spent– Direct or

throughimplementing

agency *

(`)

Relief to martyrs’ families

Technical support for hospitals and institutes

Prevention of disability and rehabilitation

Contribution to Foundation/Trusts

Serving the nationin field of science,astronomy & Animal Welfare

Measures for the benefit of armed forces veterans, war windows and their dependants

Health

Health

Various sectors covered under schedule VII of the CompaniesAct, 2013

Education

PAN-India

Maharashtra

Gujarat & Maharashtra

Mumbai

Maharashtra

100,000 100,000 100,000

750,000 750,000 750,000

260,000 260,000 260,000

425,000 425,000 425,000

200,000 200,000 200,000

Through implementingagency





Total 1,735,000 1,735,000 1,735,000

Name of Director Designation and Role on CSR Committee DIN No.





Independent Director - Chairman

Executive Chairman - Member

Managing Director - Member

Independent Director - Member

00355215

00166520

00166385

00239580

24

PLASTICS LTD.

6. In case the Company has failed to spend the 2% amount of the average net prot of the last 3 Financial years or any part thereof, the Company shall provide the reasons for not spending the amount in its Board report: Not applicable

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR policy, is in compliance with CSR objectives and policy of the Company.

We hereby confirm that implementation and monitoring of the CSR policy are in compliance with CSR objectives and CSR policy of the Company.


K. V. ChitalliaChairman (CSR Committee)

(DIN-00355215)


Dilip M. Parekh Managing Director(DIN–00166385)

Date : June 29, 2020Place : Mumbai


25

for the nancial year ended on March 31, 2020

Disclosures pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the Company and percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the financial year:

* Shri Mulchand S. Chheda resigned as Independent Director effective October 01, 2019 # Shri Shailesh S. Shah joined was appointed as Independent Director effective November 13, 2019 ^ Ms. Nidhi M. Shah resigned as Company Secretary w.e.f November 30, 2019 ^^ Ms. Ankita Agarwal was appointed as Company Secretary effective February 07, 2020

(ii) The percentage increase in the median remuneration of employees in the financial year : 5%

(iii) The number of permanent employees on the rolls of Company: The Company is having 150 Staff and 225 Workers on its permanent roll.

(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration: The average annual increase in the salaries of employees other than managerial personnel in the last year was 5%. This increase in the remuneration of employees was justified based on the Company’s performance and also various other factors like performance, experience, industry trend, etc.

(v) Affirmation that the remuneration is as per the remuneration policy of the Company: The Company affirms that Remuneration is as per the remuneration policy of the Company.

(vi) The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to the Members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said annexure is open for inspection at the Registered Office of the Company. Any Member interested in obtaining a copy of the same may write to the Company Secretary.

(vii) For the year ended on March 31, 2020 the Company has paid remuneration to its two directors i.e. Executive Chairman and Managing Director and there were no employee of the Company who was drawing remuneration in excess of the remuneration of these directors.

ANNEXURE - E TO THE DIRECTOR'S REPORT

Name Designation % of increase in FY 2019-20 Ratio of remuneration toMRE



Shri Mulchand S. Chheda*



Smt. Hina V. Mehta


Shri Shailesh S. Shah#

Shri Dharmesh R. Sachade

Ms. Nidhi M. Shah^

Ms. Ankita Agarwal^^

Managing Director

Executive Chairman

Independent Director



Non-Executive Director


Add. Independent Director

Chief Financial Officer

Company Secretary

Company Secretary

NIL

NIL

NA

NA

NA

NA

NA

NA

NIL

NIL

NA

1285%

1285%

NA

NA

NA

NA

NA

NA

497%

128%

NA




(DIN – 00166520)

26

PLASTICS LTD.

(A) CONSERVATION OF ENERGY

(i) The steps taken or impact on conservation of energy: The Company is continuously replacing the inefficient equipment's with latest energy efficient technology & up gradation of equipment's continually. The Company is also increasing the awareness of energy saving within the organization to avoid the wastage of energy. It is putting best efforts to reduce energy consumption in all its operations and activities.

(ii) The steps taken by the company for utilising alternate sources of energy: Project work of solar power roof top panel installation is under process at Daman Plant

(iii) The capital investment on energy conservation equipment's: ̀ 1,450,000/-

(B) TECHNOLOGY ABSORPTION:

(i) The efforts made towards technology absorption: The Company keep on doing Research & Development for developing new designs, monitoring productions pattern and replacing of old machines with energy efficient and technologically advanced machines.

(ii) The benefits derived like product improvement, cost reduction, improved performance of machines and its utilisation. The above efforts are able to deliver a broad spectrum of new & customized solution that has created strong demand of its products in export market.

(iii) The Company has not imported any technology during the year under review.

(iv) Expenditure incurred on Research & Development – insignificant.

(C) FOREIGN EXCHANGE EARNING AND OUTGO




(DIN – 00166520)

(`)

Particulars 2019-2020 2018-19

Foreign Exchange earned (FOB)

Foreign Exchange used

96,387,235

34,846,973

83,825,460

12,139,624

ANNEXURE - F TO THE DIRECTORS' REPORT


27

INDIAN ECONOMY Indian has emerged as the fastest growing economy in the world and is expected to be in top list of the world in the coming years. With Make in India initiative of the government, the country's economy was expected to boost with an aim to contribute 25% of the GDP from the manufacturing sector and a rise in the GDP growth. However, with the outbreak of COVID-19 pandemic, the GDP of India is expected to decline in fiscal 2021. Further, crude oil prices are expected to average $30 per barrel in fiscal 2021, cushioning the economy.

Plastics constitute a very important segment of Indian economy and are a facilitator of large number of industries. The COVID 19 outbreak has severely impacted the lives of individuals and the way government and businesses operate. Against the backdrop of this pandemic, the plastic industries are standing out for all good reasons and it is not denying the fact that plastic as a material has had its shining moment during this period. Your company is among the most trusted plastic brands in India with wide and new products in the field of moulded furniture.

The focus of the Government is moving to create a balance between Health and Safety of Countrymen while keeping eyes to revive the economy back on the growth plans. The Company expects that by November this year the business should be returning to normalcy.

PLASTIC INDUSTRY STRUCTURE AND DEVELOPMENTS: The Indian plastics industry has made significant progress since beginning and the industry has grown and diversified rapidly. The industry spans the country and hosts more than 2,000 exporters. It employs about 4 million people and comprises more than 30,000 processing units, 85-90 percent of which are small and medium-sized enterprises.

During April 2019-January 2020, plastics export from India stood at US$ 7.045 billion out of which exports of raw plastic material stood at US$ 2.91 billion. The Indian plastics industry offers excellent potential in terms of capacity, infrastructure and skilled manpower. It is supported by a large number of polymer producers, and plastic process machinery and mould manufacturers in the country.

Among the industry's major strengths is the availability of raw materials in the country. Thus, plastic processors do not have to depend on imports. These raw materials, including polypropylene, high-density polyethylene, low-density polyethylene and PVC, are manufactured domestically.

India is ready to have 18 plastic parks and Government will be investing ̀ 40 crore to increase the domestic production of plastics. This will achieve environmentally sustainable growth and increase employment.

Looking to the current scenario, we expect that the demand will increase as import of goods is reduced due to negative sentiments. Being a leading reputed manufacturer of quality products, we are optimistic of the future. The Company maintains its view that there is ample growth opportunity for plastic business in the near future with the new “Atmanirbhar Bharat” campaign of the government

COVID-19 pandemic has led to affect consumer behaviour which has forced business to change its way of doing business. The Company is well positioned to handle and face the challenges by supplying its products in the required sectors. The Company's product ranges from crates, containers and pallets for transportation of perishable and pharmaceuticals items to insulated box and insulated shippers for transportation of other supplies. The Company has a wide range of waste collection and disposal bins to maintain the sanitation and hygiene of the country. The Company expects its business to grow in world market in the years to come.

The financial parameters of the Company are strong and in position to make investment, which will help to grab any new opportunity in Export and Domestic market.

FINANCIAL REVIEW:

Revenue from Operation:

The Company deals in only one segment i.e. Plastic Articles segment and serving its customers from their manufacturing units in Daman, Cochin Ongole, Central America & two units in West Africa. The Company is focusing on expanding its customer base in new territories and to add newer product lines to tap additional business.

The turnover of the company is ̀ 9,872.61 lakhs as compared to previous year of ̀ 11,139.11 lakh.

Operating Prot:

The Company registered operating profit of `1,376.51 Lakhs in comparison to `1,506.24 Lakhs in previous year, due to fluctuation in raw material prices and other operating cost.

MANAGEMENT DISCUSSION & ANALYSIS

28

PLASTICS LTD.

Interest:

The interest cost has substantially reduced during the current year to ₹182.77 Lakhs as compared to previous year of ₹247.88 Lakhs. The Company has also earned Interest income of ₹82.05 lakhs from Subsidiary Company.

Prot:

Your Company has registered a lower Profit before Tax of ̀ 231.92 Lakhs as compared to previous year ̀ 687.16 Lakhs and net profit after tax of ̀ 198.49 Lakhs as compared to ̀ 546.59 Lakhs in previous year. Profit for the year was impacted partially due to non-receipt of Dividend from Joint Venture Company and fluctuation in prices of raw material and other operating cost.

Changes in Key Financial Ratios:

Pursuant to provisions of Regulation 34(3) of SEBI (LODR) Regulations 2015 read with Schedule V Part B(i) details of the change in key financial ratios is given hereunder:

BUSINESS OUTLOOK

Covid-19 pandemic has impacted the business operations across various sectors of the global economy, making it very challenging environment for all the businesses. This may change the way of doing business and working in the future.

Government is taking all necessary precautions and steps to boost the economy of the country by announcing relief packages in comparison to its annual GDP and by reducing repo rates continuously, and is expected that the economy may revive in the second half of the fiscal 2021.

Though the forthcoming year is going to be very uncertain with this COVID-19 pandemic across the globe, the priority of people have changed, which will take longer time for normalcy in the market. Income of the people have affected largely and reduced demand to a great extent. However, the Company is able to manage immediate challenges of re-establishing normalcy in business operations and is in the process of assessing long term implications and opportunities that may emerge from this situation.

The company is taking required measures by innovating new products and by expanding to deliver its products throughout the country. In this current scenario, the Company is continuously working to strengthen its brand with the Digital India initiative of the government by expanding its business online on e-commerce platform. The Company is focusing to make product development in line with changing consumer preferences. The Company is expected to bring back the growth by harnessing the intrinsic strength of its brand, innovation capabilities, strong distribution network and cost efficiency programs.

OPPORTUNITIES

Plastics Industry has a big scope in various government schemes such as infrastructure development, sanitation and Swachh Bharat Abhiyan and we foresee higher consumption with boost in economy. The Company is also focussing to grow internationally to export its products with new ideas and innovation. The plastic industry, which has been previously snarled in the issue of plastic waste pollution, has sized up the pandemic event as an opportunity to finally be recognised as a valuable material, and the safest choice during contagion outbreaks.

Post GST era, the unorganised players in the plastic industry were already finding it difficult to gain advantage on the price. Now with COVID-19 scenario, the companies with high debt and weak cash flow are bound to head towards consolidation. This will allow organised players with opportunities to acquire regional players at lower valuation.

Name

Debtors Turnover

Inventory Turnover

Interest Coverage Ratio

Current Ratio

Debt Equity Ratio

Operating Profit Margin

Net Profit Margin

in Days

in Days

Times

Times

Times

%

%

75

86

2.27

2.31

0.31

13.94

2.01

Year EndedCategory

31/03/2020 31/03/2019

Deviationin %

86

76

3.77

1.85

0.46

13.52

4.91

(12.79)

13.16

(39.85)

25.09

(32.91)

3.11

(59.02)


29

THREAT

Cost of raw material

The higher raw material prices can increase the production cost of the players operating in the industry. However, with strong brand equity, healthy balance sheet and multi-location presence, the Company expects to gain significant market share from unorganised and organised players in the near future.

The outbreak of COVID-19 and the measures against it have caused complete lockdowns across the globe, leading to low demand of products. With uncertainties looming over the next two quarters, it is further worsening the competitiveness on the domestic plastic manufacturers.

INTERNAL CONTROL SYSTEM

The Company has adequate internal financial control procedures commensurate with its size and nature of business. These control provide reasonable assurance regarding effectiveness and efficiency of operations, safeguarding of assets, prevention and detection of frauds and error, accuracy and timely preparation of reliable financial information. The Company has appointed Internal Auditors comprising professional Chartered Accountants who periodically audit at all units/locations and report to the management. Based on the audit observation and recommendations, follow ups and remedial measures are being taken including review and increase in scope, on time to time.

The Audit Committee reviews reports submitted by the internal auditors and statutory auditors. The Audit Committee also ascertain the views of the statutory auditors on the adequacy of internal control systems and takes appropriate action. Based on its evaluation, our internal financial controls are adequate and operating effectively.

RISK MANAGEMENT

The Company has an effective risk management framework in place to primarily control business and operational risks. The major risk areas are periodically and systematically reviewed by the senior management. Comprehensive policies and procedures help identify, mitigate and monitor risks at various levels. By taking such proactive measures, the Company ensures that strategic business objectives are achieved seamlessly. The Company has a well-documented risk management Policy, which is reviewed by the management periodically.

The volatile movement in exchange rates caused by major global developments undoubtedly have an impact on the Company, since the Company is exposed to foreign currency loans and makes payment in foreign currency with overseas JV and Subsidiary.

Apart from the risks on account of foreign exchange and commodity price, the business of the Company is exposed to certain operating business risk which may be internal or external risk, requiring quick identify, analyse and mitigation of risk by appropriate control measures and collective actions.

Further, the Company's operations might be adversely impacted due to exposure of pandemic COVID-19. Demand for the company's products may be affected due to change in consumer behaviour and reduced productivity due to lockdown or quarantines. This may affect the revenue growth in the short and medium term. Your Company is taking all necessary precaution to address any changes that may emerge post COVID-19.

HUMAN RESOURCES

The Company recognizes the importance and contribution of its human resources for the overall growth and development. The Company is keen to retain its key employees and encourage employees to providing new and innovating ideas for betterment and development of the Company. The Management takes upmost care for the health and safety of the employees and maintain a cordial relation between the Company and the employees. The Company is providing all necessary infrastructure facilities to enable employees to work from home due to pandemic COVID-19 lockdown. As on March 31, 2020, the Company had 375 permanent employees on its rolls.

30

PLASTICS LTD.

CAUTIONARY STATEMENT

Some of the Statements in this Management's Discussions and Analysis describing the company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the company's operations include changes in economic conditions affecting demand, supply and price movements in the domestic and overseas markets in which your company operates changes in the Government regulations, Tax Laws and other Statutes or other incidental factors. The company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in future.




(DIN – 00166520)


31

1. Company's philosophy on Code of Governance

Prima's philosophy envisages reaching people touching lives globally by following the core values of the Company viz. Quality, Reliability, Consistency, Trust, Passion and Innovation which also form a base of the Corporate Governance practices of the Company. The Company ensures to work by these principles in all its interactions with stakeholders comprising regulators, employees, customers, vendors, investors and the society at large.

The Company believes that the same could be achieved by maintaining transparency in its dealings, adopting good policies and governance practices and systems with clear accountability, integrity and highest standards of regulatory compliances. The Company is committed to learn and adopt the best practices of Corporate Governance.

2. Board of Directors

The Board has an optimum mix of 2 Executive, 1 Non-Executive and 4 Independent Directors, which is in conformity with Regulation 17 of SEBI Listing Regulations read with section 149 of the Act. All Independent Directors are eminent persons with wide range of expertise and experience on the Board, thereby ensuring the best interest of stakeholders and the Company.

Details of Directors, their Attendance and other Directorship/Committee Memberships as on March 31, 2020:

Notes:

1) The above excludes directorships in Private, foreign companies and companies licensed under Section 8, of the Act, 2013.

2) The above refers to membership in Committees referred to in Regulation 26(1) of SEBI listing Regulations; viz. Audit Committee and Stakeholders' Relationship Committees of all public limited companies.

3) During the year, Shri Mulchand S. Chheda resigned from the Board of Directors of the Company w.e.f. October 01, 2019

4) Shri Dilip M. Parekh is liable to retire by rotation in ensuing AGM and eligible for re-appointment. He is related to Shri Bhaskar M. Parekh and Smt Hina V. Mehta as Brother and thus belongs to Promoter Group. No Other Directors are related to any other director on the Board.

5) Shri Shailesh S. Shah was appointed as an Additional Independent Director of the Company w.e.f. November 13, 2019. Shri Snehal N. Muzoomdar have been appointed as Independent Director of the Company for a term of 5 (five) years effective from January 29, 2019 by the Members at the 25th AGM of the Company held on August 03, 2019.

CORPORATE GOVERNANCE REPORT

Name Attendance

Board Meeting

Last AGM held

No. of outsidedirectorship(s)

in PublicCompany

No. of outsideCommittee

Position(s) held

Chairman Member

Name of the othercompany

Numberof Shares

held

Promoters and Executive Directors

Shri Bhaskar M.Parekh, Chairman

Shri Dilip M.Parekh, Managing Director

Independent Directors

4 YES

4 YES

NIL NIL NIL NIL 2551610

NIL NIL NIL NIL 2651420

Shri Shailesh S. Shah

2 NA NIL NIL NIL NIL NIL

Shri Rasiklal M.Doshi

4 YES NIL NIL NIL NIL 3500

Shri Krishnakant V.Chitalia

4 NO 1 NIL 1 Venlon Enterprises Ltd.(Independent Director)

5500

Shri Snehal N.Muzoomdar

4 YES 2 1 1 1. Indo-Nippon Chemicals Co Ltd.(Director) 2. Perfect Octave Media Projects Ltd. (Independent Director)

NIL


Smt. Hina V. Mehta 4 YES NIL NIL NIL NIL 101

Shri Mulchand S. Chheda

1 NO NIL NIL NIL NIL NIL

32

PLASTICS LTD.

The brief profile and other information of the directors seeking appointment/re-appointment is provided in the notice convening the Annual General Meeting.

Meetings of the BoardFour Board meetings were held during the year under review and the gap between two meetings did not exceed 120 days. The Board Meetings were held on May 22, 2019, August 13, 2019, November 13, 2019 & February 07, 2020. The necessary quorum was present for all meetings.

Code of ConductThe Company has a comprehensive Code of Conduct for all Board Members, and all employees, including the senior management of the Company. All the Directors and senior management have affirmed compliance with the Code of Conduct and a declaration to this effect signed by the Managing Director is attached to this report. A copy of the code of conduct is also available on the website of the Company.

Core skills/expertise/ competencies available with the Board

Familiarisation Programme for Independent Directors:The Directors are provided with necessary documents, report and policies to enable them to familiarise with the Company procedure and practices. Periodic Plant visit for Directors at Daman Plant, were also conducted to enable them to understand the operation of the Company. In addition, periodic presentation in Board and Committee meeting relating to updates on the Roles, responsibilities, rights and powers of the Directors', the Code of Conduct for Independent Directors' etc. were made.

The framework together with the details of the familiarization programme conducted has been uploaded on the website of the Company www.primaplastics.com

Independent Directors' MeetingThe Company's Independent Directors met once during the financial year under review. The Independent Directors met to discuss matters pertaining to operational position of the Company and performance evaluation program.

3. Committees of the BoardThe Board has formed various committees and the composition and terms of reference of all the Committees is in accordance with the provisions of the Listing Regulations and the Companies Act, 2013. The details of the Committees are as follows: a) Audit Committee The Audit Committee of the Company is constituted in line with the regulation 18 of SEBI Listing Regulations relating to

Corporate Governance read with Section 177 of the Companies Act, 2013. As at March 31, 2020 the Audit Committee comprises of 4 Directors of which three are Independent Directors. The details of directors along with their attendance during Committees meetings are detailed below:

# Appointed as Member of this Committee w.e.f. May 22, 2019 ^ Resigned as Member of this Committee w.e.f. October 01, 2019 *Appointed as Member of this Committee w.e.f. February 07, 2020

Finance Comprehensive understanding of financial accounting, reporting and controls and analysis.Appreciation of long-term trends, strategic choices and experience in guiding and leading management teams to make decisions in uncertain environments.

Experience in developing governance practices, serving the best interests of all stakeholders, maintaining board and management accountability, building long-term effective stakeholder engagements and driving corporate ethics and values.

Strategy and Planning

Governance

Name Category Position Number ofMeetings held

during the year2019-20

Number ofMeetings

attended duringthe year 2019-20


Shri Mulchand S. Chheda^

Shri Snehal N. Muzoomdar#


Shri Shailesh S. Shah*




Managing Director

Additional Independent Director

Chairman

Member

Member

Member

Member

4

4

4

4

4

4

1

3

4

1


33

During the year, the Committee met on May 22, 2019, August 13, 2019, November 13, 2019 & February 07, 2020.The Audit Committee invites Senior Executives representing Finance, Accounts and representatives of the Internal & Statutory Auditors to be present at its meetings. The Committee periodically reviews Internal Control systems and the report of Internal Auditors of the Company. The Company Secretary is the Secretary to the Committee.

Powers and Terms of reference of the Committee inter-alia include:§ Reviewing quarterly and annual financial statements along with Limited review report and auditors' report thereon before

submission to the Board.§ Appointment and performance of Internal and statutory auditors.§ Evaluation of internal financial controls and risk management systems and vigil mechanism.§ Oversight of the Company's financial reporting process and the disclosure of its financial information to ensure that the financial

statement is correct, sufficient and credible;§ Reviewing the utilization of loans and/ or advances from investment by the holding company in the subsidiary.§ Scrutiny of inter-corporate loans and investments.§ for approval with particular reference to: Ø Matters required to be included in the Directors' Report in terms of sub-section 3 of Section 134 of the Companies Act, 2013 to

be included in the Directors Responsibility Statement; Ø Changes if any, in accounting policies and practices and reasons for the same; Ø Disclosure of related party transactions; Ø major accounting entries involving estimates based on the exercise of judgment by management; Ø significant adjustments made in the financial statements arising out of audit findings; Ø compliance with listing and other legal requirements relating to financial statements; Ø modified opinion(s) in the draft audit report if any.

b) Nomination and Remuneration Committee The constitution of Nomination & Remuneration Committee is in accordance with Regulation 19 of SEBI Listing Regulations and

sub section (1) of Section 178 of the Companies Act, 2013, the details of directors along with their attendance during meeting is detailed below:

* Ceased to be Member consequent upon his resignation w.e.f. October 01, 2019 # Appointed as Member of this Committee w.e.f November 13, 2019

During the year four meetings were held on May 22, 2019, August 13, 2019, November 13, 2019 & February 07, 2020. The necessary quorum was present for the meetings.

Powers and Terms of reference of the Committee inter-alia include:§ To review, assess and recommend to the Board the appointment and removal of Directors and Senior Management.§ To recommend remuneration payable to them.§ To approve the annual remuneration plan of the Company.§ Formulation of criteria for evaluation of directors' performance.§ Formulate the criteria for determining qualifications, positive attributes, and Independence of a Director, and recommend to the

Board of Directors a policy relating to the remuneration of the Directors, KMP and other employees.



Number ofMeetings



Shri Mulchand S Chheda*


Shri Snehal N. Muzoomdar#





4

4

3

4

4

1

2

2

Chairman

Member

Member

Member

34

PLASTICS LTD.

Performance evaluation of the Board, its Committees and Directors

Pursuant to the provisions of the Companies Act, 2013 read with rules made thereunder, and SEBI Listing Regulations, performance evaluation of the Directors and Board was evaluated by the Nomination and Remuneration Committee and of the Committees was evaluated by the Board seeking inputs from the Committee Members

c) Stakeholders' Relationship Committee:

The Stakeholders Relationship Committee comprises of the following members in compliance with the provisions of Section 178 of the Companies Act, 2013 and provisions of the Corporate Governance of the SEBI Listing Regulations:

*Ceased to be Member & Chairman consequent upon his resignation w.e.f. October 01, 2019 # Appointed as Chairman of this Committee w.e.f November 13, 2019

During the year under review, the Committee met four times on May 22, 2019, August 13, 2019, November 13, 2019 & February 07, 2020.

Terms of reference of the Committee inter-alia include:

• Resolving issues relating to shareholders, including redressal of complaints relating to transfer of shares, dividend etc.

• Review of corporate actions, if any and documents submitted to stock exchange.

• Review of measures and steps taken for unclaimed dividend and timely receipt of dividend, annual report, notices by the shareholders of the Company.

• Any allied matter(s) out of and incidental to these functions and not herein above specifically provided for.

Ms. Ankita Agarwal is the Company Secretary and the Compliance Officer of the Company.

Details of Investors' Complaints

Pursuant to Regulation 20 of SEBI Listing Regulations, investor's grievance redressal status and the number of pending complaints are reported every quarter to the stock exchange. The detailed particulars of Investor's complaints received from the Investors and resolved during the year are as under:

d) Share Transfer Committee

The Board has pursuant to Regulation 40(2) of SEBI Listing Regulations delegated the power of transfer of securities to the Share Transfer Committee. The Committee is a sub set of the Board and reports to the Stakeholders Relationship Committee and the Board of Directors. The Share Transfer Committee has been delegated with the responsibility to attend to the formalities pertaining to the transfer of shares and related applications at least once in a fortnight.

The Share Transfer Committee members met almost on weekly basis to ensure that the share transfer and other requests are attended promptly. The Committee comprises two Executive Directors and an Independent Director.

The terms of reference of the Share Transfer Committee are as follows: § To issue share certificates pursuant to duplicate / demat / remat /transfer / transmission / transposition



Number ofMeetings



Shri K. V. Chitalia #





Executive Chairman

Managing Director

4

4

4

4

1

4

4

4

Chairman

Chairman

Member

Member

Non-Receipt of Dividend Warrant

Complaints received from SEBI/SCORES

Outstanding complaints as on March 31, 2020

6

2

Nil

6

2

Nil

Nature of Complaint Number of complaints received Number redressed


35

§ To review the correspondence with shareholders vis-à-vis legal cases and take appropriate decisions

§ To authorize affixing of the common seal of the company on the share certificate, on any deed or instrument requiring authentication by and on behalf of the company.

Pursuant to the provisions of the Companies Act, 2013, the Company has authorized senior employee of the Company to issue duplicate share certificate and complete formalities pertaining to IEPF.

e) Corporate Social Responsibility Committee

During the year, four meetings were held on May 22, 2019, August 13, 2019, November 13, 2019 and February 07, 2020. The Members of the Committee are:

*Appointed as Member of the Committee w.e.f. November 13, 2019

The composition, powers, role and terms of reference of the Corporate Social Responsibility Committee are in accordance with Section 135 of the Companies Act, 2013 which inter-alia include:

§ Formulation and recommendation to the Board a Corporate Social Responsibility (CSR) Policy which shall indicate the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013;

§ Recommending the Board, the amount of expenditure to be incurred on the activities;

§ Monitoring compliance to the CSR policy of the Company.

f) Management Committee In addition to the above statutory Committee, the Board has also constituted a Management Committee to review and guide the

Company on various operational matters. The Committee comprises of Shri Bhaskar M. Parekh as Chairman, and Shri Dilip M. Parekh and Shri Krishnakant V. Chitalia as Members of the Committee.

• Opening/Modification of operation and closing of bank accounts;

• Grant of special / general Power of Attorney in favour of employees of the Company from time to time in connection with the conduct of the business of the Company particularly with Government and Quasi-Government Institutions;

• Authorise Employees for availing of various facility from Banks/Financial Institution;

• Carrying out any other duties that may be delegated to the Committee by the Board of Directors from time to time.

During the year under review, a meeting of the Committee was held on November 25, 2019.

4. Remuneration

The Company has a well-defined policy for the remuneration of the Directors, Key Managerial Personnel and other employees. The said policy is available on the website of the Company www.primaplastics.com. The Board of Directors / Nomination and Remuneration Committee is authorized to decide the remuneration of the Executive Directors, subject to the approval of the members. The remuneration structure comprises of salary, perquisites, retirement benefits as per law / rules and commission which is linked to the performance of the Company.

Annual increments are decided by the Board of Directors within the salary scale approved by the members. The agreement with the Executive Directors is for a specified period. Either party to the agreement is entitled to terminate the agreement by giving not less than 180 days’ notice in writing to the other party. The Company does not have a scheme for grant of stock options.

The Company has a policy for determining the remuneration of the Non-Executive Directors of the Company. The Company remunerates its Non-Executive Directors by way of sitting fees for attending each meeting of the Board and / or Committee, and the same is paid within the limits laid down in the Companies Act, 2013 read with the Rules framed thereunder



Number ofMeetings





Shri Rasiklal M. Doshi*


Executive Chairman

Managing Director


4

4

4

4

4

4

4

1

Chairman

Member

Member

Member

36

PLASTICS LTD.

The details of remuneration paid to the Directors for the financial year 2019-2020 are given below:

# Shri Shailesh S. Shah appointed w.e.f. November 13, 2019 * Shri Mulchand S. Chheda resigned from the Board w.e.f. October 01, 2019

5. General Body Meetings:

Annual General Meetings (AGM). The date and time of the Annual General Meetings held during the preceding three years and the special resolution(s) passed there at are as follows:

No Special Resolution was passed through Postal during the last financial year. No special resolution is proposed to be conducted through Postal Ballot as on the date of this Report.

6. Means of Communication

i. Quarterly Results: Quarterly results, half yearly and annual financial results of the Company are published in a national English newspaper “Financial Express” and local language newspaper viz “VartmanPravah” and are also available on the website of the Company www.primaplastics.com and the stock exchange www.bseindia.com

ii. Website: The Company's website www.primaplastics.com contains a separate dedicated section “Investor” whereshareholder's information is available.

Name Designation Salary& Allowances

Bonus Sitting Fees Total




Shri Shailesh S. Shah#


Smt. Hina V. Mehta



Executive Chairman

Managing Director

Independent Non-Executive

Director


Director


Director



Director


Director

5,851,233

5,851,233

-

-

-

-

-

-

463,562

463,562

-

-

-

-

-

-

-

-

110,000

27,500

80,000

80,000

102,500

27,500

6,314,795

6,314,795

110,000

27,500

80,000

80,000

102,500

27,500

Financialyear

Date & Time Venue Details of Special Resolution

2016-17 August 12, 2017 at11.30 a.m.

Hotel Princess Park,Daman

None

2017-18 August 25, 2018 at11.30 a.m.


1. Approve the grant of Loans/ Guarantees or providingsecurities in which directors are interested

2018-19 August 03, 2019 at 12.30 p.m.


1. Re-appointment of Shri Mulchand S. Chheda as an Independent Director2. Re-appointment of Shri Krishnakant V. Chitalia as an Independent Director3. Re-appointment of Shri Rasiklal M. Doshi as an Independent Director4. Re-appointment of Shri Bhaskar M. Parekh as Executive Chairman of the Company5. Re-appointment of Shri Dilip M. Parekh as Managing Director of the Company6. Increase in Borrowing Powers of the Company

`


37

iii. Annual Report: Annual Report containing inter alia, Audited Annual Accounts, Consolidated Financial Statements, Directors’ Report, Auditors’ Report and other important information is circulated to members and others entitled thereto. The Management’s Discussion and Analysis (MD&A) Report forms part of the Annual Report and is displayed on the Company’s website www.primaplastics.com and on the stock exchange www.bseindia.com

iv. Chairman’s Communiqué: A printed copy of the Executive Chairman’s speech is distributed to all the shareholders at the Annual General Meeting. The same is also sent to Stock Exchange.

v. Bombay Stock Exchange (BSE): The BSE website www.bseindia.com owned, managed and maintained by BSE is a singlesource to view information filed by listed companies. All disclosures and communications to BSE are filed electronically through the BSE Listing centre.

vi. SEBI Complaints Redress System (SCORES): The investor complaints are processed in a centralized web based Complaints redress system. The salient features of this system are: Centralised database of all complaints, online upload of Action Taken Reports (ATRs) by the concerned companies and online viewing by investors of actions taken on the complaint and its current status.

• Designated Exclusive email-id: The Company has designated the following email-id exclusively for investor servicing. For queries on Annual Report & in respect of shares in physical mode – [email protected].

• At present, the Company didn’t make any presentation to Institutional Investors and Analysts.

7. General Shareholders' Information

1. Date, Time & Venue of AGM September 28, 2020 at 04.00 p.m.(AGM through VC/OAVM facility)

2. Financial Calendar:

Financial Year April 01, 2020 to March 31, 2021

Tentative schedule for declaration ofresults during the financial year

2020-21

First Quarter Results

Second Quarter Results

Third Quarter Results

Year Ended March 31, 2021

By August 15, 2020

By November 15, 2020

By February 15, 2021

By May 30, 2021

Interim Dividend The Board of Directors declared Interim Dividend @10% ie. `. 1 per equity share of `.10 each for FY 2019-20.

4.

Name & Address of Registrar &Share Transfer Agent

M/s. Bigshare Services Pvt. Ltd., 1st floor, Bharat Tin Works Bldg., Opp. Vasant Oasis, Makwana Road, Marol, Andheri (E), Mumbai – 400 059.

5.

Registered Ofce Address 98/4, Prima House, Daman Industrial Estate, Kadaiya, Nani Daman, Daman(U.T.) Pin. – 396 210.

6.

Listing on Stock Exchange & StockCode

BSE Limited - 5305897.

Payment of Listing Fees

Payment of Depository Fees

ISIN No.(Demat No.): NSDL & CDSL.

Annual Listing Fees for the year 2019-20 has been paid.

Annual Custody Fees for the year 2019-20 has been paid to CDSL and NSDL.

INE573B01016

8.

9.

10.

Corporate Identication Number(CIN)

L25206DD1993PLC00147011.

38

PLASTICS LTD.

8. Market Price Data: Details of high & low of market price of the Company (PPL) on BSE and its performance in comparison with BSE Sensex (BSE) in Chart given below:

Source: www.bseindia.com Relative Performance of Prima share price vs. BSE Sensex:

9. Shareholding detailsCategory wise Shareholding as on March 31, 2020

Month April-19 May-19 June-19 July-19 Aug-19 Sept-19 Oct-19 Nov-19 Dec-19 Jan-19 Feb-20 Mar-20

High

Low

High

Low

PPL

BSE

107.00

81.90

39487.45

38460.25

98.85

75.00

40124.96

36956.10

87.45

70.25

40312.07

38870.96

78

61

40032.41

37128.26

79.00

55.00

37807.55

36102.35

84.90

58.00

39441.12

35987.80

74.00

60.05

40392.22

37415.83

66.90

53.00

41163.79

40014.23

62.90

51.50

41809.96

40135.37

75.00

52.75

42273.87

40476.55

62.00

50.00

41709.30

38219.97

54.00

23.80

39083.17

25638.90

Category No. of Shares Held % of Shareholding

A

B

Promoter's holding

a)

b)

(i)

(ii)

Indian Promoters

Persons acting in concert

Sub-Total

Non-Promoters Holding

a)

b)

c)

d)

Sub-Total

Others

a)

b)

c)

d)

e)

Sub-Total

Grand Total

Mutual Funds and UTI

Banks, Financial Institutions, Insurance Companies

(Central/State Govt. Institutions/Non-Government Inst.)

FII's

Foreign Portfolio Investors

Private Corporate Bodies

Indian Public / others

NRIs. / OCBs.

Trusts

IEPF

5167030

1265474

6432504

-

-

-

-

-

544856

3505998

331238

-

185874

4567966

11000470

46.97

11.50

58.47

-

-

-

-

-

4.95

31.88

3.01

-

1.69

41.53

100.00

April-19

44000

42000

40000

38000

36000

34000

120

100

80

60

40

20

0

PP

L

BS

E

Apr-

19

May-

19

Jun-1

9

Jul-19

Aug-1

9

Sep-1

9

Oct

-19

Nov-

19

Dec-

19

Jan-2

0

Feb-2

0

Mar-

20

BSE SENSEX VS PPL SHARE PRICE

BSE PPL


39

Distribution of Shareholding as on March 31, 2020

Shares held in physical and dematerialised form as on March 31, 2020

Outstanding ADRS, GDRS, Warrants or any convertible instruments, conversion date and impact on Equity:

The Company does not have any ADRs, GDRs, Warrants or any convertible instruments as on March 31, 2020.

Share Transfer System:

The Company has outsourced its share transfer function to Bigshare Services Pvt. Ltd. which is registered with SEBI as Category 1 Registrar for all work related to share registry of both physical and electronic mode.

10. Plant Locations:

11. Other Disclosures:

a) Related party Transactions

During the FY 2019-20, all related party transactions were in the ordinary course of business and on arm’s length basis. Prior approval of the Audit Committee was taken for entering into related party transactions and the Register of Contracts/ statement of related party transactions, were also placed before the Board / Audit Committee regularly.

The Company’s policy on Materiality of Related party transactions and on dealing with related party transactions is available on the website of the Company www.primaplastics.com.

b) Details of non-compliance by the Company, penalties and strictures imposed on the Company by Stock Exchange or SEBI or any statutory authority, or any matter related to capital markets, during the last three years:

None

c) Vigil Mechanism / Whistle Blower Policy

The Company has a Whistle Blower Policy to provide vigil mechanism for Directors/Employees to raise their concerns against unethical behaviour, fraud or violation of the Company’s code of conduct. It is also confirmed that no person has been denied access to the Audit Committee during the year. The policy is available on the website of the Company http://www.primaplastics.com/uploads/codes_policies/whistle-blower-policy.pdf.

Number of Shares Number ofShareholders

Shareholders % Number of Sharesheld

Shareholding %

1

501

1001

2001

3001

4001

5001

500

1000

2000

3000

4000

5000

10000

6138

522

269

99

35

37

51

57

7208

85.16

7.24

3.73

1.37

0.49

0.51

0.71

0.79

100.00

854312

426215

396835

252393

121846

174306

373162

8401401

11,000,470

7.77

3.87

3.61

2.29

1.11

1.59

3.39

76.37

100.00

10001 and above

TOTAl

Physical

Dematerialised

Total

2,61,555

10,738,915

11,000,470

2.38%

97.62%

100.00%

Sr.No.

1

2

3

4

Plant Location

Daman Unit I

Daman Unit II

Kerala

Andhra Pradesh

98/4 Prima House, Daman Industrial Estate, Kadaiya, Nani Daman, Daman (U.T.), Pin - 396 210.

85/1, Prima House, Daman Industrial Estate, Kadaiya, Nani Daman, Daman (U.T.), Pin - 396 210.

Door No.X/588-Q/A, KINFRA-SIP, Survey No.508 (Part), Block No.32, Nellad P.O., Mazhuvannur

Village, Ernakulam District, Kerala – 686 669.

Plot No.543, APIIC Growth Centre, Gundlapalli, Ongole, Andhra Pradesh

Address

40

PLASTICS LTD.

d) Risk Management

Your Company has a comprehensive Risk Management Policy. The Policy inter-alia provides for review of the risk assessment and minimization procedure, laying down procedure to inform the Board in the matter and for periodical review of the procedure to ensure that Executive Management controls the risks through properly defined framework.

e) Commodity price risk or foreign exchange risk and hedging activities: The Company does not deal in commodities and hence the disclosure pursuant to SEBI Circular dated November 15, 2018 is not required to be given. For a detailed discussion on foreign exchange risk and hedging activities, please refer to Management Discussion and Analysis Report.

f) Credit Rating

CRISIL has given the credit rating of CRISIL BBB/Stable for the debt instruments/facilities of the Company. The detail of Credit Rating is available on the website at http://www.primaplastics.com/financial-highlights.php

g) Corporate Governance

Company had complied with Corporate Governance requirements specified in Regulations 17 to 27 and clause (b) to (i) of sub regulation (2) of Regulation 46 of SEBI Listing Regulations

The Company is in compliance of all the mandatory requirements of Corporate Governance. Further under the discretionary requirements as specified in Part E of Schedule II your company have appointed separate persons for the post of Chairman and Managing Director and have enabled direct reporting of Internal Auditors’ to the Audit Committee.

h) Certication from Company Secretary in practice:

A certificate from Mr Sadashiv V Shet, Practising Company Secretary, that none of the Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such statutory authority is part of this report.

i) Policy on “Material” Subsidiary

The Company has approved policy on determining Material Subsidiary which can be accessed at Company’s website.

j) Fees paid to the Statutory Auditors, M/s. Khimji Kunverji & Co. LLP, Chartered Accountants

Total fees for all services paid by the Company on a consolidated basis, to the Statutory Auditors including all entities in the network firm/network entity of which the Statutory Auditor is a part during the year ended March 31, 2020 is ̀ 1,101,150/-.

k) DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND

REDRESSAL) ACT, 2013

12. Address for Correspondence and Shareholders Assistance:

1. Investors can communicate at the following address:

Ms. Ankita Agarwal – Company Secretary cum Compliance Ofcer,

M/s. Prima Plastics Limited, 41, National House,

Opp. Ansa “A’ Building, Saki Vihar Road, Powai, Andheri (E), Mumbai – 400 072

Tel. No.+ 91 22 - 2857 4768 / 2857 4769 * Fax No. + 91 22 - 2857 2859 * E-mail: [email protected]

2. M/s. Bigshare Services Pvt. Ltd. (R&T AGENT)

Unit: Prima Plastics Limited,

st 1 Floor, Bharat Tin Works Bldg., Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai – 400 059.

Shareholder holding shares in Demat mode should address all their correspondence to the respective Depository Participants.

2019-20

Nil

Nil

Nil

4 (at different units)

Workplace sexual harassment complaints received during the year

Number of cases filed

Disposal through conciliation

Pending cases

Number of workshops & awareness programme conducted


41

13. Transfer of unpaid/unclaimed amount & shares to IEPF fund:

During the year under review the Company has credited unclaimed dividend of FY 2011-12 amounting to `326,478 to IEPF pursuant to section 124(5) of the Companies Act, 2013. Further pursuant to the provisions of the Act, the company has transferred 16350 shares to IEPF Authority, in respect of which dividend has not been paid or claimed for seven consecutive years or more. The voting rights on the above shares shall remain frozen till the rightful owner of such shares claims the shares.

The members may claim the shares from IEPF Authority by submitting an online application in Form No. IEPF-5 available on the website www.iepf.gov.in with a copy to the Company. Details of the shares transferred to the IEPF Authority during the financial year 2019-20 are also available on the website of the Company.

The following tables give information relating to various outstanding dividends and the dates by which they can be claimed by the shareholders from the Company’s Registrar and Transfer Agent:

15. CEO/CFO Certication:

The Managing Director and the Chief Financial Officer of the Company have given Compliance Certificate to the Board in terms of regulation 17(8) read with Part 8 of Schedule II of the SEBI Regulations, 2015 for the financial year ended March 31, 2020, copy of which is attached to this report. The MD and CFO also give quarterly certification on financial results in terms of Regulation 33(2) of the Listing Regulations.

Dividend Year Date Of Declaration Proposed date to transferthe amount to IEPF

2012-2013

2013-2014

2014-2015

2015-2016 Int1

2015-2016 Int2

2016-2017

2017-2018

2018-2019

14-09-2013

20-09-2014

24-09-2015

05-02-2016

16-03-2016

12-08-2017

25-08-2018

03-08-2019

18-10-2020

24-10-2021

28-10-2022

12-03-2023

22-04-2023

18-09-2024

27-09-2025

06-09-2026




(DIN – 00166520)

42

PLASTICS LTD.

To,

The MembersPrima Plastics Limited98/4 Prima House Daman Industrial EstateKadaiyaNani Daman, Daman, 396210

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Prima Plastics Limited having CIN: L25206DD1993PLC001470 and having registered office at 98/4 Prima House Daman Industrial Estate, Kadaiya, Nani Daman, 396210 (hereinafter referred to as 'the Company'), produced before me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on March 31, 2020 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs.

* Resigned on October 01, 2019

DECLARATION UNDER REGULATION 34(3) READ WITH PART D OF SCHEDULE V OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

It is hereby declared that all the Board Members and Senior Management Personnel of the Company have affirmed adherence to and compliance with the Code of Conduct for the year ended March 31, 2020.

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) OF SEBI (LODR), REGULATIONS, 2015)

Date of Appointment in theCompany

Mr.Bhaskar M. Parekh

Mr.Mulchand S. Chheda

Mr.Krishnakant V. Chitalia

Mr.Rasiklal M. Doshi

Ms.Hina V. Mehta

Mr.Dilip M. Parekh

Mr.SnehalNatvarlal Muzoomdar

Mr.Shailesh Sanmukhlal Shah

Sr. No.

Name of the Company DIN

1.

2.*

3.

4.

5.

6.

7.

8.

00166520

00179932

00355215

00239580

07201194

00166385

00729992

01172073

17/11/1993

05/12/1994

18/06/1996

18/06/1996

29/05/2015

17/11/1993

29/01/2019

13/11/2019



Dilip M. ParekhManaging Director(DIN – 00166385)


43



UDIN: F002477B000392966

Pursuant to the requirement under Regulation 17(8) of the SEBI listing regulations, 2015, we, the Managing Director and Chief Financial Officer of the Company, to the best of our knowledge, certify to the Board that

A. We have reviewed audited financial statements for the year ended on March 31, 2020 and that to the best of our knowledge and belief:

(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading.

(2) these statements together present a true and fair view of the listed entity's affairs and are in compliance with Indian accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year ended on March 31, 2020, which are fraudulent, illegal or violative of the listed entity's code of conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

D. We have indicated to the auditors and the Audit Committee

(1) There are no significant changes in internal control over financial reporting during the year ended on March 31, 2020;

(2) There are no significant changes in accounting policies and the Company has complied with Ind AS guidelines as applicable to the Company;

(3) There are no instances of significant fraud of which we have become aware and the involvement therein, of the management or an employee having a significant role in the listed entity's internal control system over financial reporting.

For Prima Plastics Ltd.

PRACTICING COMPANY SECRETARY'S CERTIFICATE ON COMPLIANCE OF

CONDITIONS OF CORPORATE GOVERNANCE

To,

The Members


I have examined the compliance of conditions of Corporate Governance by PRIMA PLASTICS LIMITED (the Company), for the financial year ended on March 31, 2020, as stipulated under the relevant clauses of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015.

The compliance of conditions of Corporate Governance is the responsibility of the Management. My examination was limited to a review of procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In my opinion and to the best of my information and according to the explanations given to me and based on the representations made by the Directors & the Management, I certify that the Company has complied with the conditions of Corporate Governance as stipulated in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

MANAGING DIRECTOR/CFO CERTIFICATION


Dilip M. ParekhManaging Director(DIN – 00166385)

Dharmesh R. SachadeChief Financial OfficerM.No. 139349

44

PLASTICS LTD.



UDIN: F002477B000392988

To the Members of Prima Plastics Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Prima Plastics Limited (“the Company”), which comprise the standalone balance sheet as at March 31, 2020, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2020, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note 49 of the standalone financial statements, as regards to the management evaluation of COVID - 19 impact on the future performance of the Company. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

INDEPENDENT AUDITORS' REPORT

Key Audit Matters How the matter was addressed in our audit

Revenue Recognition - Discounts, incentives, rebates etc

• Revenue is measured net of discounts, incentives, rebates etc. given to the customers on the Company's sales.

• Due to the Company's presence across different marketing regions within the country and the competitive business environment, the estimation of the various types of discounts, incentives and rebate schemes to be recognised based on sales made during the year is considered to be complex and judgmental.

• Therefore, there is a risk of revenue being misstated as a result of variations in the assessment of discounts, incentives and rebates.

• Given the complexity and judgement required to assess the provision for discounts, incentives and rebates, this is a key audit matter.

• We have assessed the Company’s accounting policies relating to revenue, discounts, incentives and rebates by comparing with applicable accounting standards.

• We have assessed the design and implementation and tested the operating effectiveness of Company’s internal controls over the provisions, approvals and disbursements of discounts, incentives and rebates.

• We have assessed the Company’s computations for accrual of discounts, incentives and rebates, on a sample basis, and compared the accruals made with the approved schemes and underlying documents.

• We have verified, on a sample basis, the underlying documentation for discounts, incentives and rebates recorded and disbursed during the year.

• We have compared the historical trend of payments and reversal of discounts, incentives and rebates to provisions made to assess the current year accruals.

• We have examined the manual journals posted to discounts, rebates and incentives to identify unusual or irregular items.

Our procedures included:


45

Other Information

The Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report but does not include the standalone financial statements and our auditors’ report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors' Responsibility for the Standalone Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (“Ind AS”) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Company’s Management and Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone financial statements made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

46

PLASTICS LTD.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act;

e) On the basis of the written representations received from the directors as on March 31, 2020 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a director in terms of Section 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

3. With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

a) The Company has disclosed the impact of pending litigations as at March 31, 2020 on its financial position in its standalone financial statements - Refer note 30 to the standalone financial statements;

b) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer note 48 to the standalone financial statements. The Company did not have any other long-term contracts for which there were any material foreseeable losses.

c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

d) The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from November 08, 2016 to December 30, 2016 have not been made in these standalone financial statements since they do not pertain to the financial year ended March 31, 2020.

4. With respect to the matter to be included in the Auditors’ Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

For Khimji Kunverji & Co LLP(Formerly Khimji Kunverji & Co)Chartered AccountantsFirm Registration No: 105146W/W-100621

Vinit K JainPartner Membership No: 145911ICAI UDIN: 20145911AAAAAZ2664

MumbaiJune 29, 2020


47

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified by the Management during the year. In our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

ii. The inventory, except for goods-in-transit and stocks lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records have been properly dealt with in the books of account.

iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans given, investments made, guarantees given and security provided.

v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year in terms of the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by the Company as specified under Section 148(1) of the Act, for maintenance of cost records in respect of products manufactured by the Company, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income-tax, Goods and Service Tax, Duty of Customs, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax, Goods and Service Tax, Duty of Customs, Cess and other material statutory dues were in arrears as at March 31, 2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Duty of Customs, Duty of Excise and Value added Tax, which have not been deposited as on March 31, 2020 on account of disputes.

viii. According to the information and explanations given to us, and based on the records of the Company, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks, government and dues to debenture holders.

ix. According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.

x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.

xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

Annexure A to the Independent Auditors' Report on standalone nancial statements

48

PLASTICS LTD.

xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.

xvi. According to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.



MumbaiJune 29, 2020


49

(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the internal nancial controls with reference to the aforesaid standalone nancial statements under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013

Opinion

We have audited the internal financial controls with reference to standalone financial statements of Prima Plastics Limited (“the Company”) as of March 31, 2020 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone financial statements and such internal financial controls were operating effectively as at March 31, 2020, based on the internal financial controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“the Guidance Note”).

Management's Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (“the Act”).

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to standalone financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements were established and maintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to standalone financial statements.

Meaning of Internal Financial controls with Reference to Standalone Financial Statements

A company's internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to standalone financial statements include those policies and procedures that:

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the standalone financial statements.

Annexure B to the Independent Auditors' Report on the standalone nancial statements

50

PLASTICS LTD.

Inherent Limitations of Internal Financial controls with Reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements to future periods are subject to the risk that the internal financial controls with reference to standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.



MumbaiJune 29, 2020


51

52

PLASTICS LTD.

STANDALONE BALANCE SHEET AS AT MARCH 31, 2020

Non Current AssetsProperty, Plant and EquipmentCapital Work in ProgressIntangible AssetsRight of Use AssetsFinancial Assets(i) Investments(ii) Loans (iii) Other Non Current Financial AssetsIncome Tax Assets (Net)Other Non-Current AssetsTotal Non - Current AssetsCurrent AssetsInventoriesFinancial Assets(i) Trade Receivables(ii) Cash and Cash Equivalents(iii) Bank Balances other than Cash and Cash Equivalents(iv) Loans(v) Other Current Financial AssetsOther Current AssetsTotal Current AssetsTOTAL ASSETS

EquityEquity Share CapitalOther EquityTotal EquityNon-Current LiabilitiesFinancial Liabilities(i) Borrowings(ii) Other Non Current Financial LiabilitiesDeferred Tax Liabilities (Net)Total Non-Current LiabilitiesCurrent LiabilitiesFinancial Liabilities(i) Borrowings(ii) Trade Payables (a) Total Outstanding Dues of Micro Enterprises and Small Enterprises (b) Total Outstanding Dues of Creditors other than Micro Enterprises and Small Enterprises(iii) Other Current Financial LiabilitiesOther Current LiabilitiesProvisionsTotal Current LiabilitiesTOTAL EQUITY AND LIABILITIESSignicant Accounting Policies The accompanying Notes are an integral part of the Standalone Financial Statements

Particulars Note

1.

2.

EQUITY AND LIABILITIES1.

2.

3.

ASSETS

2

242

345

6

7

89

10111213

1415

164217

1819

202122

1

241,510,960 1,050,000 1,475,798

11,184,639

42,205,470 92,871,908 1,112,365 3,072,290 5,177,790 399,661,220

232,893,535

203,583,858 29,387,173 11,841,894 7,269,835 27,949,379 33,207,330 546,133,004 945,794,224

110,004,700 549,939,499 659,944,199

23,459,525 4,895,514 21,440,096 49,795,135

163,392,367

13,482,663 13,417,892

34,339,341 6,427,695 4,994,932 236,054,890 945,794,224

248,644,817 1,234,100 663,338

-

42,205,470 157,624,640 2,526,071 3,109,474 2,890,885 458,898,795

233,235,769

262,383,622 4,035,560 10,852,390 7,547,471 41,473,207 22,984,468 582,512,487 1,041,411,282

110,004,700 556,247,437 666,252,137

35,577,214 - 24,642,247 60,219,461

257,400,084

8,096,854 6,981,136

27,536,860 8,815,039 6,109,711 314,939,684 1,041,411,282

As per our Report of even date attached

For Khimji Kunverji & Co LLP(Formerly Khimji Kunverji & Co)Chartered AccountantsFirm Registration No : 105146W/W-100621

For and on behalf of the Board ofDirectors of Prima Plastics LimitedCIN : L25206DD1993PLC001470

Vinit K JainPartnerM.No.145911

Dharmesh R. Sachade Chief Financial Officer M.No.139349

Ankita AgarwalCompany SecretaryM.No. A-31851

Bhaskar M. ParekhExecutive Chairman DIN No. 00166520

Dilip M. ParekhManaging DirectorDIN No. 00166385

MumbaiJune 29,2020

As at March 31, 2019

₹


₹

STANDALONE STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED MARCH 31, 2020

Revenue From Operations

Other Income

Total Revenue (I+II)

Expenses

Cost of Materials Consumed

Purchase of Stock-in-Trade

Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress

Employee Benefits Expense

Finance Costs

Depreciation and Amortisation Expenses

Other Expenses

Total Expenses

Prot Before Tax (III-IV)

Tax Expense

Current Tax

Deferred Tax

Total Tax Expense

Prot after Tax (V-VI)

Other comprehensive Income

- Items that will not be reclassified to profit or loss.

- Income Tax relating to the Items that will not be reclassified to profit or loss.

Other comprehensive Income for the year

Total Comprehensive Income for the year (VII+VIII)

Earnings per equity share (Face Value ₹10/- each)

- Basic

- Diluted

Signicant Accounting Policies

The accompanying Notes are an integral part of the Standalone Financial Statements

I.

II.

III.

IV.

V.

VI.

VII.

VIII.

IX.

X.

23

24

25

26

27

28

2 & 42

29

17

36

1

1,113,999,037

47,845,474

1,161,844,511

727,123,509

38,901,276

(36,452,980)

119,539,532

24,788,146

20,104,202

199,124,887

1,093,128,572

68,715,939

14,736,077

(679,428)

14,056,649

54,659,290

(501,362)

139,479

(361,883)

54,297,407

4.97

4.97

Particulars Note

987,261,400

10,313,337

997,574,737

598,225,210

7,523,700

(9,608,854)

129,633,032

18,276,588

31,858,312

198,474,249

974,382,237

231,92,500

6,703,181

(3,360,094)

3,343,087

19,849,413

1,790,380

(498,084)

1,292,296

21,141,709

1.80

1.80




MumbaiJune 29,2020

Year endMarch 31, 2019

₹

Year end March 31, 2020

₹







53

A. Equity Share Capital For the year ended March 31, 2020

For the year ended March 31, 2019

B. Other Equity For the year ended March 31, 2020

For the year ended March 31, 2019

# Net of Tax amounting to ₹ 498,084/-@ Net of Tax amounting to ₹ 139,479/-## Net of Tax amounting to ₹ 340,141/-

The accompanying Notes are an integral part of the Standalone Financial Statement

Standalone Statement of Changes in Equity (SOCIE) for the year ended March 31, 2020

Balance as at April 01, 2019 Changes in Equity Share Capital during the year

Balance as at March 31, 2020

110,004,700 - 110,004,700

Balance as at April 01, 2018 Changes in Equity Share Capital during the year

Balance as at March 31, 2019

110,004,700 - 110,004,700

`

`

Particulars Securities Premium

General Reserve

Retained Earnings

TotalOther Equity

Balance at the beginning of the reporting period

Profit for the year

Remeasurement Gain/(Loss) on Defined Benefit Plan#

Transition Impact of Ind AS 116 Leases (Refer note No. 42)##

Total Comprehensive income for the year

Dividend (Including Tax on Dividend)

Transfer from Retained Earnings

Balance at the end of the reporting period

13,080,000

-

-

-

-

-

-

13,080,000

120,656,286

-

-

-

-

-

5,000,000

125,656,286

422,511,151

19,849,413

1,292,296

(882,507)

20,259,202

(26,567,140)

(5,000,000)

411,203,213

556,247,437

19,849,413

1,292,296

(882,507)

20,259,202

(26,567,140)

-

549,939,499

Particulars Securities Premium

General Reserve

Retained Earnings

TotalOther Equity

Balance at the beginning of the reporting period

Profit for the year

Remeasurement Gain/(Loss) on Defined Benefit Plan@

Total Comprehensive income for the year

Dividend (Including Tax on Dividend)

Transfer from Retained Earnings

Balance at the end of the reporting period

13,080,000

-

-

-

-

-

13,080,000

115,656,286

-

-

-

-

5,000,000

120,656,286

399,693,684

54,659,290

(361,883)

54,297,407

(26,479,940)

(5,000,000)

422,511,151

528,429,970

54,659,290

(361,883)

54,297,407

(26,479,940)

-

556,247,437

`

`









MumbaiJune 29,2020

54

PLASTICS LTD.

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2020

Year ended March 31, 2019

₹


₹

Notes:

i) The Cash Flow statement has been prepared under the "Indirect Method" as set out Indian Accounting Standard (Ind AS-7) Statement of Cash Flows.


55

Cash Flow from Operating Activities

Prot Before Tax

Adjustments :


Interest Expenses

Provision for doubtful debts and Bad Debts written off

(Profit) / Loss on Sale of Property, Plant and Equipments

Dividend Income

Interest Income

Operating Prot before Working Capital Changes

Changes in Working Capital

Adjustments for (Increase)/Decrease in Operating Assets:

Trade Receivables

Inventories

Other Assets

Adjustments for Increase/(Decrease) in Operating Liabilities:

Trade Payables

Short Term Provisions

Other Liabilities

Cash Generated From Operations

Income Tax Paid

Net Cash Inow / (Outow) from Operating Activities (A)

Cash Flow from Investment Activities

Purchase of Property, Plant and Equipments

Sale of Property, Plant and Equipments

Capital Work-in-Progress

Interest received

Dividend received

Proceeds from inter-corporate deposits

Redemption/(Investment) in other bank deposits

Net Cash Inow / (Outow) from Investing Activities (B)

Cash Flow from Financing Activities

Repayment of Long Term Borrowings

Proceeds / (Repayment) from Short Term Borrowings

Interest Paid

Dividend Paid (including Tax on Dividend)

Repayment of Lease Liability

Net Cash Inow / (Outow) from Financing Activities(C)

Net Increase/(Decrease) In Cash and Cash Equivalents (A+B+C)

Cash & Cash Equivalents as at March 31, 2020


68,715,939

20,104,202

22,991,068

4,472,104

(1,114,472)

(28,402,207)

(11,612,441)

75,154,193

(56,562,447)

(11,812,691)

(4,471,472)

(2,804,741)

(2,972,651)

11,026,761

7,556,952

(12,446,921)

(4,889,969)

(19,749,778)

1,552,036

(641,415)

11,612,441

28,402,207

10,000,000

(1,331,568)

29,843,923

(465,363)

15,870,814

(22,991,068)

(26,479,940)

-

(34,065,557)

(9,111,603)

4,035,560

13,147,163

23,192,500

31,858,312

17,523,871

13,939,869

(884,450)

-

(9,394,887)

76,235,215

47,740,333

342,234

62,939,869

11,822,565

675,601

(1,902,660)

197,853,157

(6,665,997)

191,187,160

(16,999,905)

1,500,000

184,100

9,394,887

-

-

648,324

(5,272,594)

(12,117,689)

(94,007,717)

(16,174,962)

(26,567,140)

(11,695,445)

(160,562,953)

25,351,613

29,387,173

4,035,560

A.

B.

C.

ii) Changes in liabilities arising from financing activities:

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2020 (Continued)

Particulars Non Cash Changes

March 31, 2019

Cash Flows Non Cash Changes

March 31, 2020

Non Current Borrowings (Including Current Maturity)

Current Borrowings

Total

51,001,248

257,400,084

308,401,332

` ` ` `

(9,443,559)

(94,007,717)

(103,451,276)

-

-

-

41,557,689

163,392,367

204,950,056









MumbaiJune 29,2020

56

PLASTICS LTD.

NOTES FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS

Note 1 (A) : Company Overview and Signicant Accounting Policies

Company Overview:

The Prima Plastics Limited (“the Company”) is a Public Limited Company, incorporated in India and has registered office at 98/4 Prima House, Daman Industrial Estate, Nani Daman, Daman – 396210. It is incorporated under the Companies Act, 2013 and its shares are listed on the Bombay Stock Exchange Limited. The Company is one of the leading plastic articles manufacturing company in India having 4 manufacturing facilities spread across the country.

Signicant Accounting Policies:

a) Statement of Compliance:

These standalone financial statements (hereinafter referred to as “financial statements”) are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, the relevant provisions of the Companies Act, 2013 (the Act) and guidelines issued by the Securities and Exchange Board of India ("SEBI"), as applicable.

The financial statements are authorised for issue by the Board of Directors of the Company at their meeting held on June 29, 2020.

b) Basis of Preparation of Accounts: Basis of Preparation:

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

i. Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments); and

ii. Employee’s Defined Benefit Plan as per Actuarial Valuation.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique.

Functional and Presentation Currency:

The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates.

Classification of Assets and Liabilities into Current/Non-Current:

The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

i. It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or

ii. It is held primarily for the purpose of trading; or

iii. It is expected to realise the asset within twelve months after the reporting period; or

iv. The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current

Similarly, a liability is classified as current if:

i. It is expected to be settled in the normal operating cycle; or

ii. ii. It is held primarily for the purpose of trading; or

iii. It is due to be settled within twelve months after the reporting period; or

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.

All other liabilities are classified as non-current.


57


c) Property, Plant and Equipment (PPE):

PPE are stated at their cost of acquisition/installation or construction net of accumulated depreciation, and impairment losses, if any. The initial cost of PPE comprises of its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs of decommissioning. Subsequent expenditure relating to PPE are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the Statement of Profit and Loss in the period in which the costs are incurred.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

Any gain or loss on disposal of an item of PPE is recognized in the Statement of Profit and Loss.

d) Capital Work in Progress:

Expenditure/ Income during construction period (including financing cost related to borrowed funds for construction or acquisi t ion of qualifying PPE) is included under Capital Work-in-Progress, and the same is allocated to the respective PPE on t he completion of their construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under “Other non-current Assets".

e) Depreciation:

Depreciation on PPE is the systematic allocation of the depreciable amount over its useful life and is provided on a straight-line basis over such useful lives as prescribed in Schedule II to the Act or as per technical assessment conducted by the management. Freehold Land with indefinite life is not depreciated.

Depreciable amount of PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE

is expected to be available for use by the Company.

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives have been assessed taking into account the nature of the PPE and the estimated usage of the asset on the basis of management’s best estimation of obtaining economic benefits from those classes of assets. The estimated useful life is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

Such classes of assets and their useful lives are as under:

f) Depreciation on additions is provided on a pro-rata basis from the date of acquisition or installation. Depreciation on deductions / disposals is provided on a pro-rata basis till the date of such sale or disposal.

g) Intangible Assets and Amortization:

Intangible assets with finite useful life that are acquired separately are stated at acquisition cost less accumulated amortization and impairment losses, if any. The Company determines the useful life as the period over which the future economic benefits will flow to the Company after taking into account all relevant facts and circumstances. The estimated useful life and amortization method is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

Class of intangible assets and their estimated useful lives are as under:

NatureNo Useful Life

1

2

3

Plant and Machinery

Moulds

Leasehold Land

15 - 20 Years

8 - 15 Years

Over the period of lease agreement

NatureNo Useful Life

1 Software 5 Years

58

PLASTICS LTD.


h) Impairment of Non-Financial Assets: Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be

recoverable. An impairment loss is recognised in the Statement of Profit and Loss for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

i) Inventories:

Inventories are valued as follows:

Raw Materials, Stores and Packing Materials:

Valued at lower of cost and net realisable value(NRV). However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on Weighted Average basis which includes expenditure incurred for acquiring inventories like purchase price, import duties, taxes (net of tax credit) and other costs incurred in bringing the inventories to their present location and condition.

Work-in-progress (WIP), nished goods, stock in trade:

Valued at lower of cost or NRV. Cost of finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average basis.

Waste / Scrap:

Waste/Scrap inventory is valued at NRV.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated cost necessary to make the sale.

j) Borrowing Costs:

General and specific borrowing cost that are attributable to the acquisition or construction of qualifying asset, are capitalised as a part of the cost of such asset up to the date when such assets is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost are recognised as an expense in the period in which they are incurred.

Borrowing cost includes interest expense and other ancillary costs incurred in connection with borrowing of funds.

k) Government Grants:

Government grants related to income under State Investment Promotion Scheme linked with VAT / GST payment and reimbursement of certain costs incurred, are recognised in the Statement of Profit and Loss in the period in which they become receivable.

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

l) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessment of time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non -occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.


59


Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and is recognised. A contingent asset is disclosed, in financial statements, where an inflow of economic benefits is probable.

m) Revenue Recognition:

(i) Revenue from Contracts with Customers

• Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

• Revenue is measured at the fair value of consideration received or receivable taking into account the amount of discounts,

incentives, volume rebates, outgoing taxes on sales. Any amounts receivable from the customer are recognised as revenue after the control over the goods sold are transferred to the customer which is generally on dispatch of goods.

• Variable consideration - This includes incentives, volume rebates, discounts etc. It is estimated at contract inception considering the terms of various schemes with customers and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. It is reassessed at end of each reporting period.

• Significant financing component - Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less.

(ii) Dividend income is accounted for when the right to receive the income is established.

(iii) Interest income is recognised using the Effective Interest Rate Method.

n) Lease:

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether

(i) the contract involves the use of identified asset;

(ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and;

(iii) the Company has the right to direct the use of the asset.

As a lessee

The Company recognizes a right-of-use asset (“ROU”) and a lease liability at the lease commencement date. The ROU is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term.

The right-of-use assets and lease liabilities include these options when it is reasonably certain that the option will be exercised.

The ROU is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises fixed payments, including in-substance fixed payments.

60

PLASTICS LTD.


The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the ROU, or is recorded in Statement of Profit or Loss if the carrying amount of the ROU has been reduced to zero.

Lease Liabilities have been presented in 'Financial Liabilities' and the 'ROU' have been presented separately in the Balance Sheet. Lease payments have been classified as financing activities in the Statement of Cash Flows.

Short-term leases: The Company has elected not to recognise ROU and lease liabilities for short term leases that have a lease term of 12 months

or lower. The Company recognises the lease payments associated with these leases as an expense over the lease term. The related cash flows are classified as Operating activities in the Statement of Cash Flows.

Under Ind AS 17 In the comparative period, accounting for leases were done as per Ind AS 17. Leases were classified as finance leases

whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as Operating Leases.

As a Lessee: Operating Lease: Lease rentals are charged or recognised in the Statement of Profit and Loss on a straight-line basis over the

lease term, except where the payment are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increase.

Finance Lease: Assets held under finance leases are recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs.

o) Employee Benet Expense: • Dened benet plan: The Company has defined benefit plan for post-employment benefits, for all employees in the form of Gratuity administered

through trust funded with Life Insurance Corporation of India. The Company's liabilities under Payment of Gratuity Act are determined on the basis of independent actuarial valuation.

The liability in respect of gratuity is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees' services.

Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income (OCI) in the period in which they occur. Remeasurement recognised in OCI is reflected immediately in retained earnings and will not be reclassified to Statement of Profit and Loss. Past service cost is recognised in the Statement of Profit and Loss in the period of a plan amendment. Interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset and is recognised in the Statement of Profit and Loss.

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

The defined benefit obligation recognised in the Balance Sheet represents the actual deficit or surplus in the Company's defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

• Dened contribution plan: Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them

to the contributions.

The eligible employees of the Company are entitled to receive benefits in respect of provident fund, for which both the employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The contributions as specified under the law are made to the Government Provident Fund monthly.


61


• Short-term employee benets:

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave in the period the related service is rendered. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

p) Income Taxes:

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

• Current Tax:

Current Tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws.

• Deferred Tax:

Deferred tax is recognised, on all temporary differences at the reporting date between the tax base of assets and liabilities and their carrying amounts for financial reporting purpose.

Deferred tax liabilities and assets are measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting date. Minimum Alternate Tax (MAT) Credits are in the form of unused tax credits that are carried forward by the Company for a specified period of time, hence it is grouped with Deferred Tax Asset. MAT is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period date and are reduced to the extent that it is no longer probable.

q) Foreign Currency Transactions:

Foreign currency transactions are recorded at exchange rate prevailing on the date of the transactions. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the Balance Sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognised in the statement of profit and loss. Non- monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.

Non-Monetary items that are measured in terms of historical cost in a foreign currency are translated using exchange rate as at the date of initial transactions.

r) Earnings Per Share:

The Basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/loss after tax for the year attributable to the equity shareholders is divided by the weighted average number of equity shares outstanding during the year adjusted for the effects of all dilutive equity shares.

s) Investment in Subsidiary & Joint Venture:

The Company's investment in its Subsidiary and Joint Venture are carried at cost net of accumulated impairment loss, if any.

On disposal of the Investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

62

PLASTICS LTD.


t) Financial Instruments:

A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets & financial liabilities are recognised when the Company becomes party to contractual provisions of the relevant instruments.

Initial Recognition and Measurement:

All financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value of the financial assets or financial liabilities on initial recognition. Transaction costs directly attributable to acquisition or issue of financial assets or financial liabilities at fair value through profit or loss are charged to the Statement of Profit and Loss over the tenure of the financial assets or financial liabilities.

Classication and Subsequent Measurement: Financial Assets

• Financial assets carried at Amortised Cost:

A financial asset shall be classified and measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. In case of financial assets classified and measured at amortised cost, any interest income, foreign exchange gains or losses and impairment are recognised in the Statement of Profit and Loss.

• Financial assets at Fair Value through Other Comprehensive Income (FVTOCI):

A financial asset shall be classified and measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• Financial assets at Fair Value through prot or loss (FVTPL):

A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through OCI.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

For financial assets at FVTPL, net gains or losses, including any interest or dividend income, are recognised in the Statement of Profit and Loss.

• Classication and Subsequent Measurement: Financial Liabilities:

Financial liabilities are classified as either financial liabilities at FVTPL or 'other financial liabilities'.

• Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition at FVTPL. Gains or losses, including interest expenses on liabilities held for trading are recognised in the Statement of profit or loss.

• Other Financial Liabilities:

Other Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

The effective interest method is the method of calculating the amortised cost of a financial liability and of allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

• Impairment of nancial assets:

In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

In case of trade receivables Company applies 'simplified approach' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk lifetime ECL is used.


63


• Derecognition of Financial Instruments:

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or when it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.

On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity is recognised in the Statement of Profit and Loss.

A financial liability (or a part of a financial liability) is derecognised from the Company's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. The difference between the carrying amount of the financial liability de-recognised and the consideration paid and payable is recognised in the Statement of Profit and Loss.

u) Cash and Cash Equivalents:

Cash and Cash Equivalents in the Balance Sheet comprise cash at bank and in hand and short-term deposits that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

v) Financial Liabilities & Equity Instruments: • Classication as Debt or Equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of financial liability and an equity instrument.

• Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at the proceeds received.

w) Segment Reporting - Identication of Segments: An operating segment is a component of the Company that engages in business activities from which it may earn revenues and

incur expenses, whose operating results are regularly reviewed by the company’s Chief Operating Decision Maker (“CODM”) to make decisions for which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

Note 1 (B): Critical accounting judgements and key sources of estimation uncertainty:

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, Revenue and expenses. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

a) Useful Lives of Property, Plant & Equipment:

The Company uses its technical expertise along with historical and industrial trends for determining the economic life of an asset. The useful life is reviewed by the management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the asset.

b) Dened Benet Plans:

The cost of the defined benefit plans gratuity and the present value of the gratuity obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

c) Fair Value Measurement of Financial Instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

64

PLASTICS LTD.


d) Expected Credit Losses on Financial Assets:

The impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, customer’s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

e) Classication of Lease Ind AS 116:

Ind AS 116 Leases requires a lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of lease and the importance of the underlying lease to the Company’s operations taking into account the location of the underlying asset and the availability of the suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

f) Recognition and measurement of deferred tax assets and liabilities:

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax liability / asset that can be recognised, based upon the likely timing and the level of future taxable profits and business developments.

g) Income Taxes:

The Company calculates income tax expense based on reported income and estimated exemptions / deduction likely available to the Company The Company is continuing with higher income tax rate option, based on the available outstanding MAT credit entitlement and different exemptions & deduction enjoyed by the Company. However, the Company has applied the lower income tax rates on the deferred tax assets / liabilities to the extent these are expected to realised or settled in the future when the Company may be subject to lower tax rate based on the future financials projections.

Note 1 (C) Change of Accounting Policies on adoption of Ind AS 116:

Effective from April 01, 2019 (‘the date of transition’), the Company applied Ind AS 116 Leases, using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at April 01, 2019. Accordingly, the comparative information is not restated and is presented, as previously reported, under Ind AS 17. Additionally, the disclosure requirements in Ind AS 116 have not generally been applied to comparative information.

The Company as a lessee:

As a lessee, the Company leases assets mainly buildings. The Company previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Company. Under Ind AS 116, the Company recognises right-of-use assets and lease liabilities for most of these leases i.e. on balance sheet accounting.

On transition, for leases classified as operating leases under Ind AS 17, the lease liabilities are measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate as at April 01, 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments. The Company has tested its right-of-use assets for impairment on the date of transition and has concluded that there is no indication that the right-of-use assets are impaired.

The Company used a number of practical expedients when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17. In particular, the Company:

a. applied a single discount rate to a portfolio of leases with reasonably similar characteristics. b. relied on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were

no onerous contracts as at April 01, 2019

c. did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application

d. excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application.


65

No

te 2

: P

rop

ert

y, P

lan

t an

d E

qu

ipm

en

t an

d In

tan

gib

le A

ssets

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ear

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on

Net

Blo

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As a

t A

pri

l 01, 2019

(Op

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)

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sD

ele

tio

ns/

Ad

justm

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ts

As a

t M

arc

h 3

1,

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(Clo

sin

g)

As a

t A

pri

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(Op

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tio

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31

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at

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(Clo

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gib

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ssets

F

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Land

L

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uild

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lant &

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tan

gib

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9

34,3

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174,9

79,0

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1

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48,7

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13,7

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68,0

51,5

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306,4

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66

PLASTICS LTD.

67

As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

Note 3

Investments

Unquoted

Investments Measured at cost :

Equity Shares of Subsidiary Company fully paid upPrima Union Plasticos S.A.

3593 Equity shares of Quetzals ₹ 1,000/- each (March 31, 2019 - 3593 shares) amounting to Guatemala Quetzals 3,593,000/- (March 31, 2019 Guatemala Quetzals 3,593,000/-)

16,100 Equity shares (March 31, 2019 - 16,100 shares) of Cameroon FCFA 10,000/- each amounting to Cameroon FCFA 115,000,000/- (March 31, 2019 - FCFA 115,000,000/-)

Total

Note 4

Loans

Considered Good, Unsecured

Loans to Subsidiary

Security Deposit #

Loans to Employees

Total

Disclosure of Loans and Advances given to Subsidiaries as per regulation 34 (3) and 53 (f) of the SEBI ( Listing Obligation and Disclosure Requirements) Regulations , 2015 and Section 186 of the Companies Act, 2013 :

Prima Union Plasticos S.A. ( Subsidiary)

Amount Outstanding at the year end*

Maximum Balance Outstanding During the Year Ended*

*Refer Note No.45

The Loan has been utilised for meeting their business requirements.

# Security Deposits with Related party Amounting of ₹ 2,651,000/- (March 31, 2019 ₹ 2,651,000/- (Refer Note No.34)

Note 5

Other Non-Current Financial Assets

Bank Deposit with Maturity greater than 12 Months *

Total

*Lodged as Security with Government Department ₹ 1,112,365/- (March 31,2019 ₹ 699,553/-) and Earmarked for Specific purpose ₹ Nil (March 31, 2019 ₹ 1,826,518/-)

31,997,900

10,207,570

42,205,470

79,068,090

13,102,118

701,700

92,871,908

79,068,090

143,104,668

1,112,365

1,112,365

31,997,900

10,207,570

42,205,470

143,104,668

12,491,228

2,028,744

157,624,640

143,104,668

150,089,294

2,526,071

2,526,071


Equity Shares of Joint Venture Company fully paid upPrima Dee-Lite Plastics S.A.R.L.


68

PLASTICS LTD.

As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

*Lodged as Security with Government Department ₹ 6,202,317/- (March 31,2019 ₹ 3,459,525/-) and Earmarked for Specific purpose ₹ 1,768,187 (March 31, 2019 ₹ 3,745,597/-)

Note 6

Other Non-Current Assets

Considered good, Unsecured

Capital Advances

Total

Note 7

Inventories

(Valued at lower of cost and net realisable value, unless otherwise stated)

Raw Materials (Includes Goods in Transit ₹ 3,515,563/- March 31, 2019 ₹ Nil)

Finished Goods

Work in Progress

Stores and Packing Materials

Total

(I) The Company follows suitable provisioning norms for writing down the value of Inventories towards slow moving, non-moving and surplus inventory.

(ii) Working Capital Borrowings are secured by hypothecation of inventory of the Company.

Note 8

Trade Receivables

Considered Good - Unsecured

Significant increase in credit risk

Less : Allowances for Credit Losses

Total

Note 9

Cash and Cash Equivalents

Cash on Hand

Balance with Banks

In Current Account

In EEFC Account

Total

Note 10

Bank Balance other than Cash and Cash Equivalents

Earmarked Balances with Bank for Unpaid Dividend

Bank Deposits*

Total

5,177,790

59,750,906

152,931,782

15,410,504

4,800,343

232,893,535

203,583,858

13,408,815

216,992,673

(13,408,815)

203,583,858

607,711

28,779,462

-

29,387,173

3,871,390

7,970,504

11,841,894

2,890,885

69,708,197

148,900,360

9,833,073

4,794,139

233,235,769

262,383,622

6,750,735

269,134,357

(6,750,735)

262,383,622

322,023

3,697,059

16,478

4,035,560

3,647,268

7,205,122

10,852,390


5,177,790 2,890,885

69

As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

Note 11

Loans

Considered Good, Unsecured

Inter Corporate Deposits

Loans to Employees

Total

Note 12

Other Current Financial Assets

Advances to Employees

Security Deposits

Interest Receivable

Government Grants Receivable

Dividend Receivable

License Benefit Receivable

Total

Note 13

Other Current Assets

Pre-paid Expenses

Advance to Creditors

Gratuity - Receivable

Balance with Government Authorities

Total

Note 14

Equity Share Capital

Authorised

1,20,00,000 (March 31, 2019 - 12,000,000) Equity Shares of ₹ 10/- each

Issued, Subscribed and Fully Paid up

1,10,00,470 (March 31, 2019- 11,000,470) Equity Shares of ₹ 10/- each

A) Reconciliation of the Shares Outstanding at the beginning and at the

end of the year

Outstanding at the beginning of the year

Add: Issued During the year

Less: Cancelled During the year

Outstanding at the end of the year



2,500,000

4,769,835

7,269,835

354,931

20,298,320

2,208,252

4,244,762

-

843,114

27,949,379

1,840,078

11,619,637

703,907

19,043,708

33,207,330

120,000,000

110,004,700

110,004,700

-

-

110,004,700

2,500,000

5,047,471

7,547,471

224,500

6,745,356

4,897,599

4,244,762

23,691,360

1,669,630

41,473,207

2,118,321

12,431,423

-

8,434,724

22,984,468

120,000,000

110,004,700

110,004,700

-

-

110,004,700

70

PLASTICS LTD.


March 31, 2020 March 31, 2019

B) List of Shareholders holding more than 5% of Paid up Equity Share Capital

No of Shares

% of holding

No of Shares

% of holding

Bhaskar M. Parekh 2,551,610

2,615,420 2,615,420

2,551,61023.20% 23.20%

Dilip M. Parekh 23.78% 23.78%

Terms and Rights Attached to Equity Shares

The Company has issued only one class of Equity Shares having a par value of ̀ 10/- per share. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.


`


`

Note 15

Other Equity

a) Securities Premium Account

b) General Reserve

c) Retained Earnings

Total (a+b+c)

Nature and purpose of reserves

Note 16

Borrowings

Secured Loans

Term Loans from Banks and Financial Institution - Note (a)

Less : Current Maturities of Long Term Debts (Refer Note No.20)

Total

1) Securities Premium: Securities Premium is credited when shares are issued at

premium. It is utilised in accordance with the provisions of the Act, to issue bonus shares, to

provide for premium on redemption of shares or debentures, write-off equity related

expenses like underwriting costs, etc.

2) General Reserve : The General Reserve is used from time to time to transfer profits from

retained earnings for appropriation purposes.

Note (a) - Term Loans from Banks and Financial Institution in Local Currency

SecuredName of the Bank -AXIS Bank Repayment Terms : 60 MonthsROI: 8.51 % p.a.Nature of Security : VehicleName of the Bank - Kotak Mahindra Prime LtdRepayment Terms - 60 MonthROI: 9.51 % p.a.Nature of Security : VehicleName of the Bank - Kotak Mahindra BankRepayment Terms - 42 MonthsROI: 8.50 % to 8.90 % p.a.Nature of Security : Fixed AssetsLess : Current Portion of Term Loans shown under Other CurrentFinancial LiabilitiesTotal

6,287,496

643,002

34,627,191

(18,098,164)23,459,525

8,129,005

1,053,606

41,818,637

(15,424,034)35,577,214

13,080,000

120,656,286

422,511,151

556,247,437

51,001,248

(15,424,034)

35,577,214

13,080,000

125,656,286

411,203,213

549,939,499

41,557,689

(18,098,164)

23,459,525


As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

Note 17

Deferred Tax Liability (Net)

Deferred Tax Liabilities

- On Difference in WDV

- Others

Less : Deferred Tax Assets :

- On 43B Disallowance

- Others

- On account of reduced Income Tax rate*

Total

Cash Credit / Working Capital Borrowings are secured by hypothecation of inventories, receivable, other current assets and other tangible fixed assets, pledge of immovable properties and personal guarantee of promoter directors. ROI ranges from 8.75% to 10.75% p.a. FCNR loan in USD to fund working capital requirement is secured against current assets, tangible fixed assets of the Company and personal guarantee from promoter directors. ROI 3.80 % to 4.80% p.a.

Note 18

Borrowings

Secured

Loans repayable on demand - From Banks :

Cash Credit / Working Capital Borrowings

FCNR Loan

Total

Note 19

Trade Payables

Due to Micro and Small enterprises (Refer Note No.43) *

Other Payables (Other than Micro and Small enterprises)

Total

* The Government of India, on September 20, 2019, vide the Taxation Laws (Amendment) Ordinance 2019, inserted a new section 115BAA in the Income Tax Act, 1961, which provides an option to the Company forpaying income tax at reduced rates as per provisions/conditions defined in the said section. The Company is continuing to provide for income tax at the old rates, based on the available outstanding MAT credit entitlement to the Company under the Income Tax Act, 1961. However, the Company has applied the lower tax rates on the deferred taxassets/liabilities to the extent these are expected to be realised or settled in the future period when the Company may be subjected to lower tax rate and accordingly reversed net deferred tax liability of ₹ 2,511,752/-

* This information has been determined to the extent such parties have been identified on the basis of information available with the Company

26,830,857

-

(1,347,391)

(841,219)

-

24,642,247

125,974,614

131,425,470

257,400,084

8,096,854

6,981,136

15,077,990

28,725,978

693,911

(5,119,923)

(348,118)

(2,511,752)

21,440,096

65,390,697

98,001,670

163,392,367

13,482,663

13,417,892

26,900,555


71

72

PLASTICS LTD.


As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

18,098,164

540,063

3,871,389

5,511,929

6,317,796

34,339,341

2,655,271

3,772,424

6,427,695

4,994,932

-

4,994,932

15,424,034

1,124,679

3,647,268

7,340,879

-

27,536,860

1,758,543

7,056,496

8,815,039

4,750,887

1,358,824

6,109,711

Note 23

Revenue from Operations (Refer Note No.46)

Sale of Products

Export

Local

Other Operating Revenues

Sale of Scrap

Subsidy / Government Grants (Refer Note No. 47)

Others

Total

Note 24

Other Income

Interest Income

On Banks Fixed Deposits

On Inter Corporate Deposits

On Loan and Advance to Subsidiary Company

On Others

Year endedMarch 31, 2020

₹


₹

Note 20

Other Current Financial Liabilities

Current Maturities of Long Term Debts (Refer Note No.16)

Interest accrued but not due on borrowings

Unclaimed Dividend

Provision for Expenses

Lease Liabilities ( Refer Note No. 42)

Total

Note 21

Other Current Liabilities

Statutory Liabilities

Advances from Customers

Total

Note 22

Provisions

Provision for Employee Benets

Provision for Bonus/Leave Salary

Provision for Gratuity

Total

89,084,587

895,057,225

984,141,812

618,822

1,030,887

1,469,879

987,261,400

576,428

350,958

8,205,305

262,196

9,394,887

102,935,452

1,002,753,480

1,105,688,932

691,968

4,244,762

3,373,375

1,113,999,037

575,205

1,309,119

8,708,015

1,020,102

11,612,441

73


Dividend Income

from Joint Venture Company

Other Non-Operating Income

Profit on Sale of Property, Plant and Equipment (Net)

Exchange Gain / (Loss)

Others

Total

Note 25

Cost of Material Consumed

Opening Stock of Raw Material

Add : Purchases

Less : Closing Stock of Raw Material

Total

Note 26

Changes in inventories of Finished Goods, Stock in Trade and Work in Progress

Closing Stock

Finished Goods

Semi Finished Goods

Opening Stock

Finished Goods

Semi Finished Goods

Total

Note 27

Employee Benets Expenses

Salaries, Wages and Bonus

Leave Salary

Contribution to Provident & other funds (Refer Note No. 32)

Gratuity Expenses

Staff Welfare

Total

Note 28

Finance Costs

Interest on Borrowings

Other Borrowing Costs (Finance Charges)

Interest on Lease Liability (Refer Note No. 42)

Total


₹


₹


-

-

884,450

-

34,000

918,450

10,313,337

69,708,197

588,267,919

657,976,116

(59,750,906)

598,225,210

152,931,782

15,410,504

148,900,359

9,833,073

(9,608,854)

111,000,767

6,455,443

4,342,473

2,177,649

5,656,700

129,633,032

16,174,962

752,717

1,348,909

18,276,588

28,402,207

28,402,207

1,114,472

5,775,401

940,953

7,830,826

47,845,474

94,143,818

702,687,888

796,831,706

(69,708,197)

727,123,509

148,900,359

9,833,073

119,386,484

2,893,968

(36,452,980)

100,947,524

5,796,494

4,501,922

2,085,647

6,207,945

119,539,532

22,991,068

1,797,078

-

24,788,146

74

PLASTICS LTD.



₹


₹

Note 29

Other Expenses

Manufacturing Expenses

Labour Charges

Consumption of Stores, Spare Parts and Components, Packing Materials

Power and Fuel

Repairs to Buildings

Repairs to Machinery

Factory Insurance

Factory Expenses

Other Manufacturing Expenses

Selling and Distribution Expenses

Advertisement Expenses

Brokerage and Commission

Freight, Forward and others

Sales Promotion Expenses

Other Expenses

Professional Fees

Rent

Insurance (Others)

Corporate Social Responsibility Expenses (Refer Note No. 44)

Travelling and Conveyance Expenses

Telephone Expenses

General Expenses

Printing and Stationery

Repairs to Other's

Payment to Statutory Auditors (Refer Note No. 37)

Exchange Loss / (Gain) (Net)

Postage and Telegram

Provision against Interest Receivables

Provision for Doubtful Debts

Bad Debts written off

Sundry Balance written Off

Director's Sitting Fees

Vehicle Expenses

Total

30,069,945

17,664,054

30,348,818

1,189,835

2,957,280

1,520,709

2,379,017

5,849,620

91,979,278

567,366

90,000

49,024,023

3,196,443

52,877,832

5,192,706

4,553,542

3,292,781

1,735,000

9,109,366

984,958

7,301,937

1,372,548

756,901

1,101,150

994,054

657,129

1,175,000

7,765,570

3,293,861

1,705,438

427,500

2,197,698

53,617,139

198,474,249

27,526,053

19,027,641

30,539,343

2,213,515

3,229,495

585,076

3,014,990

8,023,831

94,159,944

1,180,973

-

51,058,204

3,877,445

56,116,622

4,002,653

14,458,849

1,694,970

1,200,070

8,090,006

1,243,075

5,483,974

2,371,444

813,598

1,220,600

-

853,862

-

4,472,104

-

-

332,500

2,610,616

48,848,321

199,124,887


Note 30: Contingent Liabilities (Ind AS 37)

A. Claims against the Company not acknowledged : Nil

The Company does not have any pending litigations and proceedings as at March 31, 2020 ( March 31, 2019 – Nil)

B. Guarantees :

The company has issued corporate guarantees as under:

(a) Guarantee of ̀ 50,011,056/- ( March 31, 2019 ̀ Nil ) in favour of Vinmar International Ltd on behalf of its subsidiary,

Prima Union Plasticos S.A. for the purpose of procurement of raw material.

Note 31: Capital and other commitments

Estimated amount of Contracts remaining to be executed on capital account, not provided for are (net of advances) ` 2,928,742/-(March 31, 2019 ̀ 1,307,337/-)

Note 32: Employee Benets (Ind AS 19)

A. Dened Benet Plans :

Gratuity:

The gratuity payable to employees is based on the employee's service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company for payment of gratuity.

Inherent Risk :

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

Statement of Change in the Present Value of Projected Benet Obligation

Change in Dened Benet Obligation

Balance at the beginning of the year

Adjustment of:

Current Service Cost

Interest Cost

Actuarial (gains)/losses recognised in Other Comprehensive Income:

- Change in Financial Assumptions

- Experience Changes

Benefits Paid

Balance at the end of the year

Change in Fair value of assets


Expected Return on Plan Assets

Re-measurements due to:

Interest on Plan Assets

ParticularsAs at

March 31, 2020`


`

18,236,014

2,071,797

1,420,585

(1,501,552)

(452,537)

(5,047,787)

14,726,520

16,877,190

1,314,733

(163,709)

15,242,365

1,751,290

1,196,526

81,455

438,412

(474,034)

18,236,014

10,983,050

862,169

18,505


75



`


`Contribution by the employer

Benefits Paid


Net Asset / (Liability) recognized in the Balance Sheet

Present value of the funded defined benefit obligation at the end of the period

Fair Value of Plan Assets

Net Asset / (Liability) in the Balance Sheet

Expenses recognized in the Statement of Prot & Loss


Interest Cost

Amount charged to the Statement of Prot and Loss

Re-measurements recognized in Other Comprehensive Income(OCI):

Changes in Financial Assumptions

Experience Adjustments

Actual return on Plan assets less interest on plan assets

Loss/ (Gain) recognized in Other Comprehensive Income(OCI)

Maturity Prole of Dened Benet Obligation:

Within the next 12 months

Between 1 and 5 years


10 Years and above

Sensitivity analysis for signicant assumptions:*

Increase/(Decrease) on present value of dened benets obligation at the

end of the year

1% increase in discount rate

1% decrease in discount rate

1% increase in salary escalation rate

1% decrease in salary escalation rate

1% increase in employee turnover rate

1% decrease in employee turnover rate

The major categories of plan assets as a percentage of total plan:

Insurer Managed Funds

Actuarial Assumptions:

Discount Rate (p.a.)

Expected Return on Plan Assets (p.a.)

Turnover Rate

Particulars

Mortality tables Indian AssuredLives Mortality

(2006-08)

Indian AssuredLives Mortality

(2006-08)

Salary Escalation Rate (p.a.)

Retirement age

Weighted Average duration of Dened benet obligation

2,450,000

(5,047,787)

15,430,427

(14,726,520)

15,430,427

703,907

2,071,797

105,852

2,177,649

(1,501,552)

(452,537)

163,709

(1,790,380)

413,395

4,373,545

6,999,614

19,927,347

(1,232,817)

1,432,119

1,444,081

(1,263,817)

148,154

(173,957)

100%

6.82%

6.82%

2.00%

5,487,500

(474,034)

16,877,190

(18,236,014)

16,877,190

(1,358,824)

1,751,290

334,357

2,085,647

81,455

438,412

(18,505)

501,362

4,262,356

4,486,993

6,240,055

25,889,883

(1,266,532)

1,474,733

1,471,636

(1,286,357)

45,324

(56,036)

100%

7.79%

7.79%

2.00%

5.00%

60 Years

9 Years

7.00%

60 Years

9 Years

*The Sensitivity Analysis have been calculated to show the movement in defined benefit obligation in isolation and assuming there are

no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods

and assumptions used in preparing the sensitivity analysis

76

PLASTICS LTD.


Discount rate:

The Discount rate is based on the prevailing market rates of Indian government securities for the estimated term of obligation.

Salary Escalation Rate:

The estimates of future salary are considered taking into account inflation, seniority, promotion and other relevant factors.

Asset Liability matching strategy

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to Insurance Company. The Insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company’s philosophy is to fund these benefits based on its own liquidity and the level of underfunding of the plan.

The Company’s expected contribution during next year is 1,282,519/- (March 31, 2019 3,430,621/-)₹ ₹

B. Dened Contribution Plans:

Amount recognized as an expense and included in Note 27 under the head “Contribution to Provident and other Funds” of Statement of Profit and Loss is 4,342,473/- (March 31, 2019 4,501,922/-) ₹ ₹

Note 33: Segment Reporting (Ind AS 108):

The Company has presented segment information in the consolidated financial statements. Accordingly, as per Ind AS 108 'Operating Segments', no disclosures related to segments are presented in these standalone financial statements.

Note 34: Related Party Disclosures (Ind AS 24):

A. List of Related Parties where control exists:

Name of Related Parties Principal Place ofBusiness

% Shareholding and Voting Power

As at March 31, 2020 As at March 31, 2019

Prima Union Plasticos S.A. – Subsidiary

Prima Deelite Plastics S.A.R.L. - Joint Venture

Guatemala

Cameroon

90%

50%

90%

50%


77


B. Other Related Parties with whom there were transactions during the year:

Above mentioned related parties are identified by the Management and same has been relied upon by the Auditors

C. The following transactions were carried out with the related parties in the ordinary course of business:

Name of Related Parties Nature of Relationship

Shri Bhaskar M. Parekh - Executive Chairman

Shri Dilip M. Parekh - Managing Director

Smt. Hina V. Mehta - Non Executive Director

Shri Mulchand S. Chheda - Independent Director (till September 30, 2019)

Shri Krishnakant V. Chitalia - Independent Director

Shri Rasiklal M. Doshi - Independent Director

Shri Snehal N. Muzoomdar - Independent Director (w.e.f. January 29, 2019)

Shri Shailesh Shah - Independent Director (w.e.f. November 13, 2019)

Shri Dharmesh R. Sachade - Chief Financial Officer (w.e.f. November 03, 2018)

Shri Manoj O. Toshniwal - Chief Financial Officer (till November 02, 2018)

Ms. Nidhi Shah - Company Secretary (till November 30, 2019)

Ms. Ankita Agarwal - Company Secretary (w.e.f. February 07, 2020)

Shri Pratik B. Parekh

Shri Paras B. Parekh

Ms. Shreya D. Parekh

Sanya Plastics

Classic Plastics

National Plastics and Allied Industries

Key Management Personnel












Relative of KMP

Relative of KMP

Relative of KMP

Entities controlled by KMP



Nature of TransactionYear ended

March 31, 2020₹


₹

Rent Paid:

Classic Plastics

Sanya Plastics


Total

Sale of Products :

Sanya Plastics

Purchase :

Sanya Plastics

Reimbursement of Expenses:


Services received from:


Relatives of Key Management Personnel

Total

Dividend Income:

Prima Deelite Plastics S.A.R.L.

Loan Repayment from Subsidiary:

Prima Union Plasticos S.A

Interest Income:

Prima Union Plasticos S.A

Corporate Guarantees on behalf of subsidiary:

Issued during the year

3,157,974

774,080

4,705,629

8,637,683

-

33,630

441,270

15,901,029

6,021,643

21,922,672

-

70,554,726

8,205,305

50,011,056

2,937,651

737,210

4,377,318

8,052,179

482,682

-

250,924

15,362,572

5,661,666

21,024,238

28,402,207

-

8,708,015

-

78

PLASTICS LTD.


D. Outstanding balances:

E. Compensation of Key Management Personnel of the Company:

The remuneration paid to key managerial personnel excludes gratuity as the provision is computed for the Company as a whole and separate figures are not available.

Based on the recommendation of the Nomination, Remuneration and Compensation Committee, all decisions relating to the remuneration of the Directors are taken by the Board of Directors of the Company, in accordance with shareholder's approval, wherever necessary.

Terms and Conditions of transactions with Related Parties: The transactions with the related parties are made in the normal course of business and on the terms equivalent to those that

prevails in arm's length transactions. Outstanding balances at the year-end are unsecured. For the year ended March 31, 2020, the Company has not recorded any impairment of receivables relating to amounts owned by

related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related parties operates.

Note 35: Income Taxes (Ind AS 12):

Reconciliation of Effective Tax Rate:

Nature of TransactionAs at

March 31, 2020₹

As atMarch 31, 2019

₹

Loans and Advances



Outstanding Interest


Rent Deposits

Classic Plastics


Sanya Plastics

Dividend Outstanding

Prima Deelite Plastics S.A.R.L.

79,068,090

-

1,602,670

1,000,000

1,500,000

151,000

-

143,104,668

125,000

2,365,613

1,000,000

1,500,000

151,000

23,691,360

Nature of TransactionYear ended

March 31, 2020₹


₹

Short - term Employee Benefits 15,901,029 15,362,572

ParticularsYear ended

March 31, 2020%


%

Applicable Tax Rate

Effect of MAT

Effect of Tax Paid at a Lower Rate

Effect of Allowances for tax purpose

Others

Effect of Reversal of Opening Deferred Tax Liability for change in income tax rates

(Refer Note 17)

Effective Tax Rate

27.82

-

-

(3.66)

1.08

(10.83)

14.41

27.82

2.72

(6.90)

(0.81)

(2.37)

-

20.46


79


Note 36: Earnings per Share (EPS) (Ind AS 33):

Note 37: Auditor's Remuneration (excluding GST) and expenses:

Note 38: Financial Instruments: Disclosure (Ind AS 107):

Classication of Financial Assets and Liabilities (Ind AS 107):

Investment in Subsidiary and Joint ventures amounting to ₹ 42,205,470/- (March 31, 2019 ₹ 42,205,470/- ) are measured at Cost in accordance with Ind AS 27.


March 31, 2020₹


₹

Basic/Diluted EPS

(i) Net Profit attributable to Equity Shareholders

(ii) Weighted average number of Equity Shares outstanding (Nos.)

Basic Earnings Per Share / Diluted Earnings Per Share (i/ii)

19,849,413

11,000,470

1.80

54,659,290

11,000,470

4.97


March 31, 2020₹


₹

Audit Fees (including Quarterly Limited Review)

Expenses Reimbursed

Fees for Other Services

1,005,000

33,650

62,500

1,005,000

35,600

180,000

ParticularsAs at

March 31, 2020₹

As atMarch 31, 2019

₹

Financial assets at Amortized cost:

Loans - Non Current

Loans - Current

Trade Receivables


Other Bank Balances

Other Non Current Financial Assets


Total

Financial liabilities at Amortized Cost:

Borrowings - Non Current

Other Financial Liabilities

Trade Payables

Borrowings - Current


Total

92,871,908

7,269,835

203,583,858

29,387,173

11,841,894

1,112,365

27,949,379

374,016,412

23,459,525

4,895,514

26,900,555

163,392,367

34,339,341

252,987,302

157,624,640

7,547,471

262,383,622

4,035,560

10,852,390

2,526,071

41,473,207

486,442,961

35,577,214

-

15,077,990

257,400,084

27,536,860

335,592,148

80

PLASTICS LTD.


Note 39: Financial Risk Management Objectives and Policies (Ind AS 107):

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets include Investments, Loans and Other receivables, Cash and Cash Equivalents and Other Bank Balances that directly derive from its operations.

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

A. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.

The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

(a) Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign currency borrowings, receivable against exports of finished goods, loan to foreign subsidiary, interest receivable on loan to subsidiary and the Company’s net investments in foreign subsidiaries.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures and uses forward contracts, if required, to hedge exposure to foreign current risk. During the year, the Company has entered into forward contract of USD 514,000 to hedge its receivables and payables. Forward contract outstanding as on March 31, 2020 is USD 200,000 against foreign currency borrowings.(March 31, 2019 USD Nil).

Foreign Currency Sensitivity on unhedged exposure:

100 bps increase in foreign exchange rates will have the following impact on profit before tax:

Note: If the rate is decreased by 100 bps profit will decrease by an equal amount.

Outstanding Foreign Currency ExposureAs at

March 31, 2020Year ended

March 31, 2019

Trade Receivables:

USD

EURO

Borrowings:

USD

Loans and Advances:

USD

Interest Receivable:

USD

Dividend Receivable :

Euro

Investments:

Euro

USD

187,904

11,951

1,300,000

1,048,845

21,260

-

191,444

477,631

46,511

-

1,900,000

2,068,845

33,158

304,899

191,444

477,631


March 31, 2020₹


₹

USD

Euro

479,413

168,919

502,496

385,670


81


(b) Interest rate risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Loan given also with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

*Above exposure in foreign currency is unhedged

Interest rate sensitivities for unhedged exposure (impact on Prot before tax due to increase in 100 bps):

Note: If the rate is decreased by 100 bps Profit will increase by an equal amount.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period.

B. Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables), and from its investing and financing activities including Deposits with Bank, Security Deposits, Loans to Employees and other financial instruments.

(a) Trade Receivables:

Trade receivables are consisting of a large number of customers The Company has credit evaluation policy for each customer and based on the evaluation credit limit of each customer is defined.

Gross Trade receivable as on March 31, 2020 ₹ 216,992,673/- (March 31, 2019 ₹ 269,134,357/-)

The Company does not have higher concentration of credit risks to a single customer.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

As per policy, Receivables are classified into different buckets based on the overdue period ranging from 3 months to more than 3 years. There are different provisioning rates for each bucket which are ranging from 2% to 100%.

Movement of Allowances for Credit Loss:

ParticularsFloating RateBorrowings

₹

Fixed RateBorrowings

₹

Total Borrowings₹

INR

USD*

Total as at March 31, 2020

INR

USD*


100,017,888

98,001,670

198,019,558

167,793,251

131,425,470

299,218,721

6,930,498

-

6,930,498

9,182,611

-

9,182,611

106,948,386

98,001,670

204,950,056

176,975,862

131,425,470

308,401,332


March 31, 2020₹


₹

INR 1,980,195 2,992,187

Particulars

Opening Provision

Add: Provided during the Year

Less: Utilised during the Year

Closing Provision

6,750,735

7,765,570

1,107,490

13,408,815

3,886,454

4,472,104

1,607,823

6,750,735

As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

82

PLASTICS LTD.


(b) Cash and Cash Equivalent and Bank Deposit:

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only based on Investment Policy of the Company.

C. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. Senior management of the Company is responsible for liquidity, funding as well as settlement management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities and investments at the reporting date based on contractual undiscounted payments.

Note 40: Distribution made and proposed (Ind AS 1):

Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (including Dividend Distribution Tax thereon) as at March 31 of respective year.

As at March 31, 2020More than

5 Years₹

Total₹

1 to 5 Years₹

Up to 1 Year₹

Trade Payables

Borrowings (including current maturities of

long term debt)



Lease Liabilities

-

-

-

-

-

26,900,555

204,950,056

540,063

9,383,318

12,095,693

-

23,459,525

-

-

5,116,821

26,900,555

181,490,531

540,063

9,383,318

6,978,872

As at March 31, 2019More than

5 Years₹

Total₹

1 to 5 Years₹

Up to 1 Year₹

Trade Payables

Borrowings (including current maturities of

long term debt)



-

-

-

-

15,077,990

308,401,332

1,124,679

10,988,147

-

35,577,214

-

-

15,077,990

272,824,118

1,124,679

10,988,147

Particulars

Cash Dividends on equity shares declared and paid:

Final Dividend for the year ended on March, 2019 ₹ 1/- per share (March 31, 2018

₹ 2/- per share)

DDT on Final Dividend

Interim Dividend for the year ended on March, 2020 ₹ 1/- per share

DDT on Interim Dividend

Total Dividend paid

Proposed Dividends on Equity shares:

Proposed Final Dividend for the year ended on March 31, 2020 ₹ Nil per share

(March 31, 2019 ₹ 1/- per share)

DDT on Proposed Dividend

Total Dividend Proposed

11,000,470

2,239,500

11,000,470

2,239,500

26,479,940

-

-

-

22,000,940

4,479,000

-

-

26,479,940

11,000,470

2,239,500

13,239,970

As atMarch 31, 2020

₹

As atMarch 31, 2019

₹


83


Note 41: Capital Management (Ind AS 1):

The Company’s objectives when managing capital are to :

(a) maximise shareholder value and provide benefits to other stakeholders and

(b) maintain an optimal capital structure to reduce the cost of capital.

For the purposes of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves attributable to the equity holders.

The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity.

In addition, the Company has financial covenants relating to the borrowing facilities that it has taken from the lenders like interest coverage service ratio, Debt to EBITDA, etc. which is maintained by the Company.

Note 42: Leases:

(A) As a lessee (Ind AS 116)

(a) The Company has implemented Indian Accounting Standard for Leases (“Ind AS 116”) with effect from April 01, 2019 using the modified retrospective approach, under which the cumulative effect of Initial application is recognized in retained earnings as on April 01, 2019. The effect of initial recognition as per Ind AS 116 is as follows:

(b) Following are the carrying value of Right of Use Assets for the year ended March 31, 2020:

(c) Impact of adoption of Ind AS 116 for the year ended March 31, 2020 is as follows:

ParticularsAs at

March 31, 2020₹

As atMarch 31, 2019

₹

Total Debt (bank and other borrowings)

Total Equity

Debt to Equity (Net)

204,950,056

659,944,198

0.31

308,401,332

666,252,137

0.46

ParticularsAs on

April 01, 2019₹

Lease liability

Right of Use (ROU) asset

Deferred tax assets

Net Impact on Retained Earnings

12,062,181

10,839,533

340,141

882,507

ParticularsGross Block

₹Accumulated depreciation and amortisation

₹Net Block

₹

As at April 01,

2019

Reclassied on account of

Ind AS 116Additions

As at March 31,

2020

Reclassied on account of

Ind AS 116For the year

As at March 31,

2020

As at April 01,

2019

As at March 31,

2020

Leasehold Land

Leasehold Building

Total

-

10,839,533

10,839,533

934,331

-

934,331

-

9,497,666

9,497,666

-

20,337,199

20,337,199

-

-

-

32,175

-

32,175

10,725

10,043,991

10,054,716

42,900

10,043,991

10,086,891

891,431

10,293,208

11,184,639

ParticularsYear Ended

March 31,2020₹

Decrease in Other Expenses (Rent Expense) by

Increase in Depreciation by (excludes depreciation on reclassified assets)

Increase in Finance cost by

Net Impact on Prot

11,695,445

10,043,991

1,348,909

302,545

Format

84

PLASTICS LTD.


(d) Lease Expenses recognized in Profit and Loss statement not included in the measurement of lease liabilities:

(e) Maturity analysis of lease liabilities– contractual undiscounted cash flows:

(f) The Weighted average incremental borrowing rate of 9.50% p.a has been applied for measuring the lease liability at thedateof initial application.

(g) The total cash outflow for leases for year ended March 31, 2020 is ₹ 11,695,445/-

(B) As a lessee (Ind AS 17) for year ended March 31, 2019 : (a) Operating lease payment recognised in the Statement of Profit and Loss amounts to ₹17,910,640/- for the year ended March

31, 2019. (b) General Description of leasing agreements: - Leased Assets: Land, Godowns, Offices, Flats, Machinery and Others. - Future Lease rentals are determined on the basis of agreed terms. - At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing. - Lease agreements are generally cancellable and are renewable by mutual consent on mutually agreed terms.

Note 43: Micro, Small and Medium EnterprisesUnder the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) which came into force from October 02, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises.

The above information has been determined to the extent such parties have been identified on the basis of information available with the Company and the same has been relied upon by the auditors.


March 31,2020₹

Expenses relating to short-term leases 4,553,542


March 31,2020₹

6,978,872

5,116,821

-

12,095,693

11,213,310

6,317,796

4,895,514

Less than one year

One to five years

More than five years

Total undiscounted lease liabilities at March 31, 2020

Discounted Lease liabilities included in the statement of financial position at March 31, 2020

Current lease liability

Non-Current lease liability

ParticularsAs at

March 31, 2020₹

As atMarch 31, 2019

₹

Principal amount:

Interest:

due thereon remaining unpaid to any supplier as at the year end

Amount of interest paid by the Company in terms of section 16 of the Micro, Small and

Medium Enterprises Development Act, 2006 (‘MSMED Act’) , along with the amount of

the payment made to the supplier beyond the appointed day during the accounting year

Amount of interest due and payable for the period of delay in making payment (which

have been paid but beyond the appointed day during the year) but without adding the

interest specified under the MSMED Act

Amount of interest accrued and remaining unpaid at the end of the accounting year

Amount of further interest remaining due and payable even in the succeeding years, until

such date when the interest dues above are actually paid to the small enterprise, for the

purpose of disallowance of a deductible expenditure under section 23 of the MSMED Act

13,482,663

-

-

-

-

-

8,096,854

-

-

-

-

-


85


Note 44: Corporate Social Responsibility

Expenditure incurred on Corporate Social Responsibility activities, included in different heads of expenses in the Statement of Profit and Loss is ₹ 1,735,000/- (March 31, 2019 ₹ 1,200,070/-) including unspent amount of ₹ 435,397/- for the FY 2018-19

The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended March 31, 2020 is ₹1,299,603/- (March 31, 2019 ₹ 1,634,500/-) i.e. 2% of average net profits for last three financials years, calculated as per section 198 of the Companies Act, 2013.

Note 45: Investment Details

Details of investments made by the Company covered u/s. 186 (4) of the Companies Act 2013 as on March 31, 2020 (including investments made in the previous years):

# Includes impact of foreign currency revaluation gain amounting to ₹ 6,518,148/-

Note 46 – Revenue (Ind AS 115)

(A) The Company is primarily in the Business of manufacture and sale of Plastic Articles. All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods.

(B) Revenue recognised from Contract liability (Advances from Customers):

(C) Reconciliation of revenue as per contract price and as recognised in statement of prot and loss:

Note 47

Government Grants:

Other Operating Revenues include Incentives against capital investments, under State Investment Promotion Scheme of ₹ 1,030,887/- (March 31, 2019 ₹ 4,224,762/-)

ParticularsTransactions

during the year₹

As at31 March, 2019

₹

Prima Union Plasticos S.A.-Subsidiary:

Loan to Subsidiary

Guarantee

Investment

Prima Deelite Plastics S.A.R.L.-Joint Venture:

Investment

70,554,726#

50,011,056

-

-

143,104,668

-

31,997,900

10,207,570

79,068,090#

-

31,997,900

10,207,570

As at31 March, 2020

₹


March 31, 2020₹

Year EndedMarch 31, 2019

₹

Opening Contract liability

Recognised as revenue during the year

7,056,496

6,512,108

5,814,421

5,409,608


March 31, 2020₹


₹

Revenue as per Contract price

Less: Discounts and incentives

Revenue as per statement of profit and loss

1,008,065,770

(23,923,958)

984,141,812

1,136,895,943

(31,207,011)

1,105,688,932

86

PLASTICS LTD.


Note 48 :

The Company has a process whereby periodically all the long term contracts (including derivatives contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts has been made in the books of accounts. There are no derivatives contracts outstanding as at year end.

Note 49 :

COVID-19 (Global Pandemic)

As per the directives of both the Central and State Governments in the wake of COVID-19 pandemic, the Company had suspended operations across various locations. The Company has been taking various precautionary measures to protect employees and their families from COVID-19.

The Company has carried out a detailed assessment of the recoverability of the carrying values of all its assets including trade receivables, inventory and loans as at the Balance Sheet date. Based on the assessment of the Company, an adequate provision for doubtful debts has been made in the Standalone Financial Statements, after factoring an anticipated reduction in collection efficiency. The Company expects to recover the net carrying amount of all its assets including inventory, receivables and loans in the ordinary course of business based on information available on current economic conditions. The Company is continuously monitoring any material changes in future economic conditions.

Operations have been resumed in a phased manner at various locations from April 20, 2020, taking cognizance of the Governments’ views around resuming manufacturing activities with controlled entry and exit facilities, and after obtaining necessary permissions in this behalf.

The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial statements.

Note 50 :

Previous year figures have been regrouped / reclassified wherever necessary to correspond with current year classification / disclosure.


87









MumbaiJune 29,2020

Independent Auditors’ Report

To the Members of


Report on the Audit of Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Prima Plastics Limited (hereinafter referred to as “the Holding Company”) and its subsidiary (Holding Company and its subsidiary together referred to as “the Group”) and its joint venture, which comprise the consolidated balance sheet as at March 31, 2020, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”)

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors on separate financial statements, as applicable, and on the other financial information of the subsidiary and joint venture, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group and its joint venture as at March 31, 2020, of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group, and its joint venture in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us along with the consideration of audit reports of the other auditors referred to in the “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements.

Emphasis of Matter

We draw attention to Note 50 of the consolidated financial statements, as regards to the management evaluation of COVID - 19 impact on the future performance of the Group. Our opinion is not modified in respect of this matter

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Key Audit Matters How the matter was addressed in our audit

Revenue Recognition - Discounts, incentives, rebates etc

• Revenue is measured net of discounts, incentives, rebates etc. given to the customers on the Holding Company's sales.

• Due to the Holding Company's presence across different marketing regions within the country and the competitive business environment, the estimation of the various types of discounts, incentives and rebate schemes to be recognised based on sales made during the year is considered to be complex and judgmental.

• Therefore, there is a risk of revenue being misstated as a result of variations in the assessment of discounts, incentives and rebates.

• Given the complexity and judgement required to assess the provision for discounts, incentives and rebates, this is a key audit matter.

• We have assessed the Holding Company’s accounting policies relating to revenue, discounts, incentives and rebates by comparing with applicable accounting standards.

• We have assessed the design and implementation and tested the operating effectiveness of Holding Company’s internal controls over the provisions, approvals and disbursements of discounts, incentives and rebates.

• We have assessed the Holding Company’s computations for accrual of discounts, incentives and rebates, on a sample basis, and compared the accruals made with the approved schemes and underlying documents.

• We have verified, on a sample basis, the underlying documentation for discounts, incentives and rebates recorded and disbursed during the year.

• We have compared the historical trend of payments and reversal of discounts, incentives and rebates to provisions made to assess the current year accruals.

• We have examined the manual journals posted to discounts, rebates and incentives to identify unusual or irregular items.

Our procedures included:

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PLASTICS LTD.

Other Information

The Holding Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Holding Company’s annual report, but does not include the consolidated financial statements and our auditors’ report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and based on the work done/ audit report of other auditors, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management’s and Board of Directors’ Responsibilities for the Consolidated Financial Statements

The Holding Company’s Management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group including its joint venture in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (“Ind AS”) specified under section 133 of the Act. The respective Management and Board of Directors of the companies included in the Group and of joint venture are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Management and Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Management and Board of Directors of the companies included in the Group and of its joint venture are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Company’s Management and the Board of Directors of the companies included in the Group and of its joint venture are responsible for overseeing the financial reporting process of each company.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(I) of the Act, we are also responsible for expressing our opinion on the internal financial controls with reference to the consolidated financial statements and the operating effectiveness of such controls based on our audit.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.

• Conclude on the appropriateness of Management and Board of Directors use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and its joint venture to cease to continue as a going concern.


89

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business activities within the Group and its joint venture to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in para (b) of the section titled ‘Other Matters’ in this audit report.

We believe that the audit evidence obtained by us along with the consideration of audit reports of the other auditors referred to in sub-paragraph (b) of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

We communicate with those charged with governance of the Holding Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

The consolidated financial statements include the audited financial statements of Prima Union Plasticos S.A, Guatemala, a subsidiary whose financial statements reflect Group’s share of total assets (before consolidation adjustments) of Rs. 1,776.04 lakh as at March 31, 2020, Group’s share of total revenue (before consolidation adjustments) of Rs. 2,833.92 lakh and Group’s share of net cash inflows of Rs. (599.37) lakh for the year ended on that date, as considered in the consolidated financial statements, which have been audited by their independent auditors. The latest available audited financial statements of Prima Dee-Lite Plastics s.a.r.l, Cameroon, a joint venture, are for the year ended December 31, 2019, accordingly the consolidated financial statements also include the Group’s share of net profit after tax (before consolidation adjustments) of Rs. 566.89 lakh for the year ended December 31, 2019, as considered in the consolidated financial statements, in respect of said joint venture, whose financial statements have been audited by their independent auditors. These financial statements have been audited by other auditors as per the requirement of the applicable accounting standards of the respective countries and have been converted as per requirement of Ind AS by the management. The independent auditors’ reports on financial statements of these entities have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors, conversion of said financial statements as per the requirement of Ind AS by the management and the procedures performed by us, as stated in the paragraph above.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the report of the other auditors and the financial statements certified by the Management.

Report on Other Legal and Regulatory Requirements

A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on separate financial statements of the subsidiary and joint venture as were audited by other auditors, as noted in the ‘Other Matters’ paragraph, we report, to the extent applicable, that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.

b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.

c) The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.

d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2020 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary company and joint venture incorporated in India, none of the directors of the Group companies, and joint venture incorporated in India is disqualified as on March 31, 2020 from being appointed as a director in terms of Section 164(2) of the Act.

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PLASTICS LTD.

f) With respect to the adequacy of the internal financial controls with reference to consolidated financial statements of the Holding Company and the operating effectiveness of such controls- refer to our separate report in “Annexure A”.

B. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements of the subsidiary and joint venture, as noted in the ‘Other Matters’ paragraph:

i. The consolidated financial statements disclose the impact of pending litigations as at March 31, 2020 on the consolidated financial position of the Group and joint venture. Refer Note 31 to the consolidated financial statements.

ii. Provision has been made in the consolidated financial statements, as required under the applicable law or Ind AS, for material foreseeable losses on long-term contracts including derivative contracts. Refer Note 49 to the consolidated financial statements in respect of such items as it relates to the Group and its joint venture.

iii. There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding Company or its subsidiary companies and joint venture incorporated in India during the year ended March 31, 2020.

iv. The disclosures in the consolidated financial statements regarding holdings as well as dealings in specified bank notes during the period from November 8, 2016 to December 30, 2016 have not been made in the consolidated financial statements since they do not pertain to the financial year ended March 31, 2020.

C. With respect to the matter to be included in the Auditor’s report under section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid during the current year by the Holding Company to its directors is in accordance with the provisions of section 197 of the Act. The remuneration paid to any director by the Holding Company is not in excess of the limit laid down under section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under section 197(16) of the Act which are required to be commented upon by us.


Vinit K JainPartner Membership No: 145911ICAI UDIN: 20145911AAAABA3893

MumbaiJune 29, 2020


91

(Referred to in paragraph A (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the internal nancial controls with reference to the aforesaid consolidated nancial statements under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013

Opinion

In conjunction with our audit of the consolidated financial statements of Prima Plastics Limited (hereinafter referred to as “the Holding Company”) as of and for the year ended March 31, 2020, we have audited the internal financial controls with reference to consolidated financial statements of the Holding Company. The Holding Company do not have any other components incorporated in India.

In our opinion, the Holding Company have, in all material respects, adequate internal financial controls with reference to consolidated financial statements and such internal financial controls were operating effectively as at March 31, 2020, based on the internal financial controls with reference to consolidated financial statements criteria established by such companies considering the essential components of such internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

Management’s Responsibility for Internal Financial Controls

The respective company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls with reference to consolidated financial statements based on the criteria established by the respective company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter referred to as “the Act”).

Auditors’ Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to consolidated financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of the internal controls based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to consolidated financial statements.

Meaning of Internal Financial controls with Reference to Consolidated Financial Statements

A company's internal financial controls with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A company's internal financial controls with reference to consolidated financial statements includes those policies and procedures that

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the consolidated financial statements.

Annexure A to the Independent Auditors' report on the consolidated nancial statements

92

PLASTICS LTD.

Inherent Limitations of Internal Financial controls with Reference to Consolidated Financial Statements

Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject to the risk that the internal financial controls with reference to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


Vinit K JainPartner Membership No: 145911ICAI UDIN: 20145911AAAABA3893

MumbaiJune 29, 2020


93

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2020

Non Current AssetsProperty, Plant and EquipmentCapital Work in ProgressIntangible AssetsRight of Use AssetsFinancial Assets(I) Investments accounted for using Equity Method(ii) Loans (iii) Other Non Current Financial AssetsIncome Tax Assets (Net)Other Non-Current AssetsTotal Non - Current AssetsCurrent AssetsInventoriesFinancial Assets(i) Trade Receivables(ii) Cash and Cash Equivalents(iii) Bank Balances other than Cash and Cash Equivalents(iv) Loans(v) Other Current Financial AssetsOther Current AssetsTotal Current AssetsTOTAL ASSETS

EquityEquity Share CapitalOther EquityTotal EquityNon Controlling Interest Non-Current LiabilitiesFinancial Liabilities(i) Borrowings(ii) Other Non Current Financial LiabilitiesDeferred Tax Liabilities (Net)Total Non-Current LiabilitiesCurrent LiabilitiesFinancial Liabilities(i) Borrowings(ii) Trade Payables (a) Total Outstanding Dues of Micro Enterprises and Small Enterprises (b) Total Outstanding Dues of Creditors other than Micro Enterprises and Small Enterprises(iii) Other Current Financial LiabilitiesCurrent Tax Liabilities (Net)Other Current LiabilitiesProvisionsTotal Current LiabilitiesTOTAL EQUITY AND LIABILITIES

Signicant Accounting Policies The accompanying Notes are an integral part of the Consolidated Financial Statements

Particulars Note As at March 31, 2020

₹

1.

2.

EQUITY AND LIABILITIES1.

2.3.

4.

ASSETS

2

243

345

6

7

89

10111213

1415

164317

1819

20

2122

1


₹









MumbaiJune 29,2020

94

PLASTICS LTD.

276,947,2661,050,0001,475,798

11,184,639

306,912,76117,167,848

1,112,3653,072,2905,177,790

624,100,757

273,883,630

237,206,35643,688,87911,841,8947,272,271

26,168,63583,094,208

683,155,8731,307,256,630

110,004,700858,308,444968,313,144

4,853,287

31,098,0594,895,514

21,440,09657,433,669

163,392,367

13,482,66347,315,857

36,840,6543,450,1176,659,8355,515,037

276,656,5301,307,256,630

296,855,9751,234,100

663,338

250,223,77317,888,196

2,526,0713,109,4742,890,885

575,391,812

268,235,123

285,782,06274,728,30810,852,390

7,556,47539,408,96958,748,498

745,311,8251,320,703,637

110,004,700780,176,596890,181,296

1,769,864

50,885,222-

24,642,24775,527,469

257,400,084

8,096,85440,920,040

28,541,7173,341,5638,815,0396,109,711

353,225,0081,320,703,637

CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED MARCH 31, 2020

Particulars Note Year ended March 31, 2019

₹


₹









MumbaiJune 29,2020


95

25 747,534,441 845,791,452

7,523,700 38,901,276

26 (5,967,207) (41,554,080)

27 153,256,005 140,692,976

28 19,708,618 25,496,582

2 & 43 47,889,151 40,160,731

29 240,780,466 239,132,543

1,210,725,174 1,288,621,480

18,275,727 20,438,667

17 (3,360,094) (679,428)

14,915,633 19,759,239

2,727,081 767,495

101,082,128 94,866,503

1,790,380 (501,362)

(498,084) 139,479

3,563,413 (1,861,721)

356,342 -

4,499,367 (2,223,604)

3,083,423 767,495

105,581,495 92,642,899

9.19 8.62

9.19 8.62

Revenue From Operations

Other Income

Total Revenue (I+II)

Expenses

Cost of Materials and Components Consumed

Purchase of Stock-in-Trade

Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress

Employee Benefits Expense

Finance Costs


Other Expenses

Total Expenses

Prot before Tax Expenses and Share in Prot of Joint Venture (III-IV)

Share in Profit of Joint Venture (net of tax expenses)

Prot Before Tax (V - VI)

Tax Expense

Current Tax

Deferred Tax

Total Tax Expense

Prot after Tax (V-VI)

Profit attributable to Non Controlling Interest

Profit attributable to owners of the Parent

Other comprehensive Income

- Items that will not be reclassified to profit or loss

- Income Tax relating to the Items that will not be reclassified to profit or loss

- Items that will be reclassified to profit or loss - FCTR

Other comprehensive Income for the year

Other Comprehensive Income attributable to Non-Controlling Interest

Other Comprehensive Income / (Loss) attributable to Owners of the Parent

Total Comprehensive Income for the year

Total Comprehensive Income attributable to Non-Controlling Interest

Total Comprehensive Income attributable to Owners of the Parent

Earning Per Share (Face Value ₹ 10/- each)

- Basic

- Diluted

Signicant Accounting Policies

The accompanying Notes are an integral part of the Consolidated Financial Statements

23

24

1,270,589,861 1,329,174,790I.

II.

II.

IV.

V.

VI.

VII.

VIII.

IX.

X.

XI.

XII.

XIII.

2,171,167 12,288,354

1,272,761,028 1,341,463,144

62,035,854 52,841,664

56,688,988 62,551,573

118,724,842 115,393,237

103,809,209 95,633,998

4,855,709 (2,223,604)

108,664,918 93,410,394

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96

PLASTICS LTD.

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.No. A

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020


97

98

PLASTICS LTD.

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2020


`


`

Cash Flow from Operating Activities

Prot Before Tax

Adjustments :


Interest Expenses

Provision for doubtful debts and Bad Debts written off

(Profit) / Loss on Sale of Property, Plant and Equipments

Interest Income

Operating Prot before Working Capital Changes

Changes in Working Capital

Adjustments for (Increase)/Decrease in Operating Assets:

Trade Receivables

Inventories

Other Assets

Adjustments for Increase/(Decrease) in Operating Liabilities:

Trade Payables

Short Term Provisions

Other Liabilities

Cash Generated From Operations

Income Tax Paid

Net Cash Inow / (Outow) from Operating Activities (A)

Cash Flow from Investment Activities

Purchase of Property, Plant and Equipments

Sale of Property, Plant and Equipments

Capital Work-in-Progress

Interest received

Proceeds from inter-corporate deposits

Redemption/(Investment) in other bank deposits

Share in (Profit)/ Loss on equity accounted investment

Net Cash Inow / (Outow) from Investing Activities (B)

Cash Flow from Financing Activities

Proceeds / (Repayment) of Long Term Borrowings

Proceeds / (Repayment) of Short Term Borrowings

Interest Paid

Dividend Paid (including Tax on Dividend)

Repayment of Lease Liability

Net Cash Inow / (Outow) from Financing Activities(C)

Net Increase/(Decrease) In Cash and Cash Equivalents (A+B+C)


Effect of exchange rate on consolidation of Foreign Subsidairy

Change due to difference in Opening Balance


11,87,24,842

4,78,89,151

1,83,72,399

1,44,42,598

(8,84,450)

(12,52,717)

19,72,91,823

3,70,13,546

(56,48,507)

(1,54,92,295)

1,17,81,626

11,95,707

(1,74,061)

22,59,67,840

(1,81,47,906)

20,78,19,933

(2,02,55,892)

15,00,000

1,84,100

12,52,717

-

6,48,324

(5,66,88,988)

(7,33,59,739)

(1,97,69,244)

(9,40,07,717)

(1,70,23,490)

(2,65,67,140)

(1,16,95,445)

(16,90,63,036)

(3,46,02,841)

4,36,88,879

35,63,413

-

7,47,28,308

11,53,93,238

4,01,60,731

2,34,87,479

45,95,414

(11,14,472)

(29,59,935)

17,95,62,454

(4,60,78,322)

(2,23,60,403)

(2,17,83,751)

1,97,76,553

(29,72,651)

1,16,86,662

11,78,30,543

(1,48,07,941)

10,30,22,602

(2,08,59,553)

15,52,030

(6,41,415)

29,59,935

1,00,00,000

20,24,041

(3,41,49,366)

(3,91,14,328)

38,777

1,58,70,814

(2,34,87,479)

(2,64,79,940)

-

(3,40,57,828)

2,98,50,445

7,47,28,308

(18,61,721)

24,60,751

4,42,78,833

Notes: i) The Cash Flow statement has been prepared under the "Indirect Method" as set out Indian Accounting Standard (Ind AS-7)

Statement of Cash Flows.

A.

B.

C.

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2020 (continued)

Particulars

Non Cash Changes

March 31, 2019 Cash Flows

Non Cash Changes March 31, 2020

Non Current Borrowings (Including Current Maturity)

Current Borrowings

Total

51,001,248

257,400,084

308,401,332

(9,443,559)

(94,007,717)

(103,451,276)

41,557,689

163,392,367

204,950,056

` ` ` `

-

-

-









MumbaiJune 29,2020


99

ii) Changes in liabilities arising from financing activities:

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1(A): Company Overview and Signicant Accounting Policies Company Overview: The Prima Plastics Limited (“the Company”) is a Public Limited Company, incorporated in India and has registered office at 98/4 Prima House, Daman Industrial Estate, Nani Daman, Daman – 396210. It is incorporated under the Companies Act, 2013 and its shares are listed on the Bombay Stock Exchange Limited. The Company is one of the leading plastic articles manufacturing company in India having 4 manufacturing facilities spread across the country.

Signicant Accounting Policies: a) Statement of Compliance: These Consolidated financial statements (hereinafter referred to as “financial statements”) are prepared in accordance with the

Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, the relevant provisions of the Companies Act, 2013 (the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.

The financial statements are authorised for issue by the Board of Directors of the Company at their meeting held on June 29, 2020.

b) Basis of preparation of Accounts: The Consolidated Financial Statements comprise the financial statements of Prima Plastics Limited (‘the holding company’) and its

Subsidiary and Joint venture (together referred as “the Company” or “ the group”). Basis of Preparation: The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities: I. Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments); and ii. Employee’s Defined Benefit Plan as per Actuarial Valuation. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between m a r k e t

participants at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique.

Functional and Presentation Currency: The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency of the

primary economic environment in which the Company operates. Classification of Assets and Liabilities into Current/Non-Current: The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current classification of its

Assets and Liabilities. For the purpose of Balance Sheet, an asset is classified as current if: i. It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or ii. It is held primarily for the purpose of trading; or iii. It is expected to realise the asset within twelve months after the reporting period; or iv. The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. Similarly, a liability is classified as current if: i. It is expected to be settled in the normal operating cycle; or ii. It is held primarily for the purpose of trading; or iii. It is due to be settled within twelve months after the reporting period; or iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the

reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.

All other liabilities are classified as non-current.

c) Property, Plant and Equipment (PPE):

PPE are stated at their cost of acquisition/installation or construction net of accumulated depreciation, and impairment losses, if any. The initial cost of PPE comprises of its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs of decommissioning.

Subsequent expenditure relating to PPE are capitalised only when it is probable that future economic benefits associated with these will flow to the Company and cost of the item can be measured reliably. All other repairs and maintenance cost are charged to the Statement of Profit and Loss in the period in which the costs are incurred.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

Any gain or loss on disposal of an item of PPE is recognised in the Statement of Profit and Loss.

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d) Capital Work in Progress:

Expenditure/ Income during construction period (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) is included under Capital Work-in-Progress, and the same is allocated to the respective PPE on the completion of their construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under “Other non-current Assets”.

e) Depreciation:

Depreciation on PPE is the systematic allocation of the depreciable amount over its useful life and is provided on a straight-line basis over such useful lives as prescribed in Schedule II to the Act or as per technical assessment conducted by the management. Freehold Land with indefinite life is not depreciated.

Depreciable amount of PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE is expected to be available for use by the Company.

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives have been assessed, taking into account the nature of the PPE and the estimated usage of the asset on the basis of management’s best estimation of obtaining economic benefits from those classes of assets. The estimated useful life is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis

Such classes of assets and their useful lives are as under:

In case of subsidiary, Depreciation is calculated by straight line method based on their useful lives.

f) Depreciation on additions is provided on a pro-rata basis from the date of acquisition or installation. Depreciation on deductions/disposals is provided on a pro-rata basis till the date of such sale or disposal.

g) Intangible Assets and Amortization :

Intangible assets with finite useful life that are acquired separately are stated at acquisition cost less accumulated amortization and impairment losses, if any. The Company determines the useful life as the period over which the future economic benefits will flow to the Company after taking into account all relevant facts and circumstances. The estimated useful life and amortization method is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

Class of intangible assets and their estimated useful lives are as under:

1

2

3

Plant and Machinery

Moulds

Leasehold Land

15 - 20 Years

8 -15 Years

Over the period of lease agreement

No Nature Useful Life

1

2

3

4

5

Plant and Machinery

Furniture and Equipments

Computer Equipments

Tools

Lease hold Improvements

5 years

5 years

3 years

4 years

3 years



1 Software 5 years


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h) Impairment of Non-Financial Assets:

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in the Statement of Profit and Loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss

i) Inventories:

Inventories are valued as follows:

Raw Materials, Stores and Packing Materials:

Valued at lower of cost and net realisable value(NRV). However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined Weighted average basis. Which includes expenditure incurred for acquiring inventories like purchase price, import duties, taxes (net of tax credit) and other costs incurred in bringing the inventories to their present location and condition.

Work-in-progress (WIP), nished goods, stock in trade:

Valued at lower of cost or NRV. Cost of finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average basis.

Waste / Scrap

Waste/Scrap inventory is valued at NRV.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated cost necessary to make the sale.

j) Borrowing Costs:

General and specific borrowing cost that are attributable to acquisition or construction of qualifying asset, are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost are recognised as an expense in the period in which they are incurred.

Borrowing cost includes interest expense and other ancillary costs incurred in connection with borrowing of funds.

k) Government Grants:

Government grants related to income under State Investment Promotion Scheme linked with VAT / GST payment and reimbursement of certain costs incurred, are recognised in the Statement of Profit and Loss in the period in which they become receivable.

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

l) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessment of time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non -occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

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Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and is recognised. A contingent asset is disclosed, in financial statements, where an inflow of economic benefits is probable

m) Revenue Recognition:

(i) Revenue from Contracts with Customers

• Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

• Revenue is measured at the fair value of consideration received or receivable taking into account the amount of discounts, incentives, volume rebates, outgoing taxes on sales. Any amounts receivable from the customer are recognised as revenue after the control over the goods sold are transferred to the customer which is generally on dispatch of goods.

• Variable consideration - This includes incentives, volume rebates, discounts etc. It is estimated at contract inception considering the terms of various schemes with customers and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. It is reassessed at end of each reporting period.

• Significant financing component - Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less.

(ii) Dividend income is accounted for when the right to receive the income is established.

(iii) Interest income is recognised using the Effective Interest Rate Method.

n) Lease:

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether

(i) the contract involves the use of identified asset;

(ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and;

(iii) the Company has the right to direct the use of the asset.

As a lessee

The Company recognizes a right-of-use asset (“ROU”) and a lease liability at the lease commencement date. The ROU is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term. The right-of-use assets and lease liabilities include these options when it is reasonably certain that the option will be exercised.

The ROU is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises fixed payments, including in-substance fixed payments.

The lease liability is subsequently measured at amortised cost using the effective interest method, It is remeasured when there is a change in future lease payments arising from a change in an index or rate.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the ROU, or is recorded in Statement of Profit or Loss if the carrying amount of the ROU has been reduced to zero.

Lease Liabilities have been presented in 'Financial Liabilities' and the 'ROU' have been presented separately in the Balance Sheet. Lease payments have been classified as financing activities in the Statement of Cash Flows.


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Short-term leases:

The Company has elected not to recognise ROU and lease liabilities for short term leases that have a lease term of 12 months or lower. The Company recognises the lease payments associated with these leases as an expense over the lease term. The related cash flows are classified as Operating activities in the Statement of Cash Flows

Under Ind AS 17

In the comparative period, accounting for leases were done as per Ind AS 17. Leases were classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as Operating Leases.

As a Lessee:

Operating Lease: Lease rentals are charged or recognised in the Statement of Profit and Loss on a straight-line basis over the lease term, except where the payment are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increase.

Finance Lease: Assets held under finance leases are recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs.

o) Foreign Operations:

The assets and liabilities of foreign operations including goodwill and fair value adjustments arising on acquisition, are translated into INR, the functional currency of the Company, at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into INR at the exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction. Exchange differences are recognized in Other Comprehensive Income (OCI) and accumulated equity (as exchange differences on translating the financial statements of a foreign operation), except to the extent that the exchange differences are allocated to NCI.

When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the cumulative amount of exchange differences related to that foreign operation recognized in OCI is reclassified to Statement of Profit and Loss as part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative amount is re-allocated to NCI. When the Group disposes of only a part of its interest in an associate or a joint venture while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to Statement of Profit and Loss.

p) Employee Benet Expense:

• Dened benet plan:

The Company has defined benefit plan for post-employment benefits, for all employees in the form of Gratuity administered through trust funded with Life Insurance Corporation of India. The Company’s liabilities under Payment of Gratuity Act are determined on the basis of independent actuarial valuation.

The liability in respect of gratuity is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services.

Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised OCI in the period in which they occur. Remeasurement recognised in OCI is reflected immediately in retained earnings and will not be reclassified to Statement of Profit and Loss. Past service cost is recognised in the Statement of Profit and Loss in the period of a plan amendment. Interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset and is recognised in the Statement of Profit and Loss.

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

The defined benefit obligation recognised in the Balance Sheet represents the actual deficit or surplus in the Company’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

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PLASTICS LTD.


• Dened contribution plan:

Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them to the contributions.

The eligible employees of the Company are entitled to receive benefits in respect of provident fund, for which both the employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions as specified under the law are made to the Government Provident Fund monthly.

• Short-term employee benets:

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave in the period the related service is rendered. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

q) Income Taxes:

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

• Current Tax:

Current Tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws.

• Deferred Tax:

Deferred tax is recognised on all temporary differences at the reporting date between the tax base of assets and liabilities and their carrying amounts for financial reporting purpose.

Deferred tax liabilities and assets are measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting date. Minimum Alternate Tax (MAT) Credits are in the form of unused tax credits that are carried forward by the Company for a specified period of time, hence it is grouped with Deferred Tax Asset. MAT is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period date and are reduced to the extent that it is no longer probable.

r) Foreign Currency Transactions:

Foreign currency transactions are recorded at exchange rate prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the Balance Sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognised in the statement of profit and loss. Non- monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.

Non-Monetary items that are measured in terms of historical cost in a foreign currency are translated using exchange rate as at the date of initial transactions.


105


s) Earnings Per Share:

The Basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/loss after tax for the year attributable to the to the equity shareholders is divided by the weighted average number of equity shares outstanding during the year adjusted for the effects of all dilutive equity shares.

t) Financial Instruments:

A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets & financial liabilities are recognised when the Company becomes party to contractual provisions of the relevant instruments.

Initial Recognition and Measurement:

All financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value of the financial assets or financial liabilities on initial recognition. Transaction costs directly attributable to acquisition or issue of financial assets or financial liabilities at fair value through profit or loss are charged to the Statement of Profit and Loss over the tenure of the financial assets or financial liabilities.

Classication and Subsequent Measurement: Financial Assets

• Financial assets carried at Amortised Cost:

A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. In case of financial assets classified and measured at amortised cost, any interest income, foreign exchange gains or losses and impairment are recognised in the Statement of Profit and Loss.

• Financial assets at Fair Value through Other Comprehensive Income (FVTOCI):

A financial asset shall measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• Financial assets at Fair Value through prot or loss (FVTPL):

A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through OCI.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets

For financial assets at FVTPL, net gains or losses, including any interest or dividend income, are recognised in the Statement of Profit and Loss.

• Classication and Subsequent Measurement: Financial Liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or ‘other financial liabilities’.

• Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition at FVTPL. Gains or losses, including interest expenses on liabilities held for trading are recognised in the Statement of profit or loss.

• Other Financial Liabilities:

Other Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

The effective interest method is the method of calculating the amortised cost of a financial liability and of allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

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PLASTICS LTD.


• Impairment of nancial assets:

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

In case of trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised from initial recognition of the receivables. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk lifetime ECL is used.

• Derecognition of Financial Instruments:

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for Derecognition under Ind AS 109.

On derecognition of a financial asset, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity is recognised in the Statement of Profit and Loss.

A financial liability (or a part of a financial liability) is derecognised from the Company’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. The difference between the carrying amount of the financial liability de-recognised and the consideration paid and payable is recognised in the Statement of Profit and Loss.

u) Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand and short-term deposits that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

v) Financial Liabilities & equity instruments:

• Classication as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of financial liability and an equity instrument.

• Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at the proceeds received.

w) Segment Reporting - Identication of Segments:

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company’s Chief Operating Decision Maker (“CODM”) to make decisions for which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

Note 1 (B): Critical accounting judgements and key sources of estimation uncertainty:

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:


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a) Useful Lives of Property, Plant & Equipment:

The Company uses its technical expertise along with historical and industrial trends for determining the economic life of an asset. The useful life is reviewed by the management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the asset.

b) Dened Benet Plans :

The cost of the defined benefit plans gratuity, the present value of the gratuity obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates.

Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

c) Fair Value Measurement of Financial Instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

d) Expected Credit Losses on Financial Assets:

The impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, customer’s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

e) Classication of Lease Ind AS 116

Ind AS 116 Leases requires a lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of lease and the importance of the underlying lease to the Company’s operations taking into account the location of the underlying asset and the availability of the suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics

f) Recognition and measurement of deferred tax assets and liabilities:

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax liability / asset that can be recognised, based upon the likely timing and the level of future taxable profits and business developments

g) Income Taxes

The Company calculates income tax expense based on reported income and estimated exemptions / deduction likely available to the Company The Company is continuing with higher income tax rate option, based on the available outstanding MAT credit entitlement and different exemptions & deduction enjoyed by the Company. However, the Company has applied the lower income tax rates on the deferred tax assets / liabilities to the extent these are expected to realised or settled in the future when the Company may be subject to lower tax rate based on the future financials projections

Note 1 (C) : Change of Accounting Policies on adoption of Ind AS 116:

Effective from April 01, 2019 (‘the date of transition’), the Company applied Ind AS 116 Leases, using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at April 01, 2019. Accordingly, the comparative information is not restated and is presented, as previously reported, under Ind AS 17. Additionally, the disclosure requirements in Ind AS 116 have not generally been applied to comparative information.

The Company as a lessee:

As a lessee, the Company leases assets mainly buildings. The Company previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Company. Under Ind AS 116, the Company recognises right-of-use assets and lease liabilities for most of these leases i.e. on balance sheet accounting.

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PLASTICS LTD.


On transition, for leases classified as operating leases under Ind AS 17, the lease liabilities are measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate as at April 01, 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments. The Company has tested its right-of-use assets for impairment on the date of transition and has concluded that there is no indication that the right-of-use assets are impaired.

The Company used a number of practical expedients when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17. In particular, the Company:

a. applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

b. relied on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as at April 01, 2019

c. did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application

d. excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application.


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110

PLASTICS LTD.

111

Note 3

Investments accounted for using Equity Method

Unquoted:

Equity Shares of Joint Venture Company fully paid up

Prima Dee-Lite Plastics s.a.r.l.

Add : Share of Profit in Joint Venture

Less: Dividend

Total

Note 4

Loans

Unsecured and Considered Good

Security Deposit #

Others Security Deposits

Loans to Employees

Total

# Security Deposits with Related party Amounting of ̀ 2,651,000/- (March 31, 2019

` 2,651,000/-) (Refer Note No.35)

Note 5

Other Non-Current Financial AssetsBank Deposits with Maturity greater than 12 Months*

Total*Lodged as Security with Government Department ̀ 1,112,365/- (March 31, 2019

` 699,553/-) and Earmarked for Specific purpose ` Nil (March 31, 2019

` 1,826,518/-)

Note 6

Other Non-Current AssetsUnsecured, Considered good

Capital Advances

Total

Note 7

Inventories

(Valued at lower of cost and net realisable value, unless otherwise stated)

Raw Materials (Includes Goods in Transit ` 3,515,563/- March 31, 2019 ` Nil)

Finished GoodsWork in Progress

Stores and Packing Materials

Total

(i) The Company follows suitable provisioning norms for writing down the value of

Inventories towards slow moving, non-moving and surplus inventory.

(ii) Working Capital Borrowings are secured by hypothecation of inventory of the

Company.


`


`


250,223,773

56,688,988

-

306,912,761

13,102,118

3,364,030

701,700

17,167,848

1,112,365

1,112,365

5,177,790

5,177,790

91,116,706

162,556,077

15,410,504

4,800,343

273,883,630

2,526,071

2,526,071

2,890,885

2,890,885

90,834,807

162,166,302

9,833,073

5,400,941

268,235,123

216,074,407

62,551,573

(28,402,207)

250,223,773

2,651,000

13,208,452

2,028,744

17,888,196


Note 8Trade ReceivableConsiderd Good - Unsecured Significant increase in credit risk

Less : Allowances for Credit Losses Total

Note 9Cash and Cash Equivalents Cash on HandBalance with BanksIn Current AccountIn EEFC AccountTotal

Note 10Bank Balance other than Cash and Cash EquivalentsEarmarked Balances with Bank for Unpaid Dividend Bank Deposits*Total*Lodged as Security with Government Department ₹ 6,202,317/- (March 31,2019 ₹ 3,459,525/-) and Earmarked for Specific purpose ₹ 1,768,187 (March 31, 2019 ₹ 3,745,597/-)

Note 11LoansUnsecured, Considered GoodInter Corporate DepositsLoans to EmployeesTotal

Note 12Other Current Financial AssetsUnsecured, Considered GoodLoan to EmployeesSecurity Deposits - EMDInterest ReceivableGovernment Grants ReceivableDividend ReceivableLicense Benefit ReceivableTotal

Note 13Other Current AssetsPre-paid ExpensesAdvance to CreditorsGratuity - ReceivableBalance with Government AuthoritiesTotal




` `

237,206,356 14,448,686

251,655,042 (14,448,686)237,206,356

666,179

37,157,744 5,864,956

43,688,879

3,871,390 7,970,504

11,841,894

2,500,000 4,772,271 7,272,271

354,931 20,298,320

427,508 4,244,762

- 843,114

26,168,635

3,520,266 14,772,261

703,907 64,097,774 83,094,208

2,500,000 5,056,475 7,556,475

224,500 6,745,356 2,833,361 4,244,762 23,691,360

1,669,630 39,408,969

2,118,321

12,891,644 -

43,738,533 58,748,498

285,782,062 7,474,404 293,256,466

(7,474,404) 285,782,062

376,049

23,211,605 51,140,654 74,728,308

3,647,268 7,205,122 10,852,390

112

PLASTICS LTD.


Terms and Rights Attached to Equity Shares

The Company has issued only one class of Equity Shares having a par value of ₹ 10/- per share. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reserves

1) Securities Premium : Securities Premium is credited when shares are issued at premium. It is utlised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs, etc.

2) General Reserve : The General Reserve is used from time to time to transfer profits from ratained earnings for appropriation purposes.

March 31, 2020 March 31, 2019

B) List of Shareholders holding more than 5% of Paid up Equity Share Capital

No of Shares

% of holding

No of Shares

% of holding

Bhaskar M. Parekh 2,551,610

2,615,420 2,615,420

2,551,61023.20% 23.20%

Dilip M. Parekh 23.78% 23.78%


113


`


`

Note 14

Equity Share Capital

Authorised

1,20,00,000 (P.Y.1,20,00,000) Equity Shares of ₹ 10/- each

Issued, Subscribed Fully Paid up

1,10,00,470 (P.Y.1,10,00,470) Equity Shares of ₹ 10/- each

A) Reconciliation of the Shares Outstanding at the beginning and at the end of

the year

Outstanding at the beginning of the year

Add: Issued During the year

Less: Cancelled During the year

Outstanding at the end of the year

120,000,000

110,004,700

110,004,700

-

-

110,004,700

120,000,000

110,004,700

110,004,700

-

-

110,004,700

Note 15

Other Equity

a) Securities Premium Account

b) General Reserve

c) Retained Earnings

d) Translation Reserve

Total (a + b + c + d)

13,080,000

125,656,286

718,281,343

1,290,815

858,308,444

13,080,000

120,656,286

648,356,566

(1,916,256)

780,176,596

Unsecured:Unsecured Loan form Union S.ARepayment Terms - 60 Months from the date of Loan givenROI: 5.00 % to 6.50 % p.a.Total

7,638,534

31,098,059

15,308,008

50,885,222

SecuredName of the Bank -AXIS Bank Repayment Terms : 60 MonthsROI: 8.51 % p.a.Nature of Security : VehicleName of the Bank - Kotak Mahindra Prime LtdRepayment Terms - 60 MonthROI: 9.51 % p.a.Nature of Security : VehicleName of the Bank - Kotak Mahindra BankRepayment Terms - 42 MonthsROI: 8.50 % to 8.90 % p.a.Nature of Security : Fixed AssetsLess : Current Portion of Term Loans shown under Other CurrentFinancial LiabilitiesTotal

6,287,496

643,002

34,627,191

(18,098,164)23,459,525

8,129,005

1,053,606

41,818,637

(15,424,034)35,577,214

Note (a) - Term Loans from Banks and Financial Instituition in Local Currency



` `

114

PLASTICS LTD.


Note 16

Borrowings

Secured Loans

Term Loans from Banks and Financial Institution - Note (a)

Less : Current Maturities of Long Term Debts (Refer Note No.20)

Total

Unsecured

Loan from Union S.A

Total

41,557,689

(18,098,164)

23,459,525

7,638,534

31,098,059

51,001,248

(15,424,034)

35,577,214

15,308,008

50,885,222

*The Government of India, on September 20, 2019, vide the Taxation Laws (Amendment) Ordinance 2019, inserted a new section 115BAA in the Income Tax Act, 1961,which provides an option to the Company for paying income tax at reduced rates as per provisions/conditions defined in the said section. The Company is continuing to provide for income tax at the old rates, based on the available outstanding MAT credit entitlement to the Company under the Income Tax Act, 1961. However, the Company has applied the lower tax rates on the deferred tax assets/liabilities to the extent these are expected to be realised or settled in the future period when the Company may be subjected to lower tax rate and accordingly reversed net deferred tax liability of ₹ 2,511,752/-

Note 17

Deferred Tax Liability (Net)

Deferred Tax Liability :

- On Difference in WDV

- Others

Less : Deferred Tax Assets :

-On 43B Disallowance

-Others

-On account of reduced Income Tax rate*

Total

28,725,978

693,911

(5,119,923)

(348,118)

(2,511,752)

21,440,096

26,830,857

-

(1,347,391)

(841,219)

-

24,642,247

115


Note 18

Borrowings

Loans repayable on demand - From Banks :

Secured

Cash Credit / Working Capital Borrowings

FCNR Loan

Total

65,390,697

98,001,670

163,392,367 Cash Credit / Working Capital Borrowings are secured by hypothecation of inventories, receivable, other current assets and other tangible fixed assets, pledge of immovable properties and personal guarantee of promoter directors. ROI ranges from 8.75% to 10.75% p.a.

FCNR loan in USD to fund working capital requirement is secured against current assets, tangible fixed assets of the Company and personal guarantee from promoter directors. ROI 3.80 % to 4.80 % p.a.

Note 20


Current Maturities of Long Term Debts (Refer Note No.16)


Unclaimed Dividend

Provision for Expenses

Lease Liabilities ( Refer Note No. 43)

Total

Note 21

Other Current Liabilities

Statutory Remittances

Advances from Customers

Total

Note 22

Provisions

Provision for Employee Benets

Provision for Bonus/Leave Salary

Provision for Gratuity

Total

18,098,164

708,532

3,871,389

7,844,773

6,317,796

36,840,654

2,887,411

3,772,424

6,659,835

5,515,037

-

5,515,037



` `

Note 19

Trade Payables

Due to Micro and Small enterprises (Refer Note No. 44) *

Other Payables (other than Micro and Small enterprises)

Total

13,482,663

47,315,857

60,798,520

* This information has been determined to the extent such parties have been identified on the basis of information available with the Company


125,974,614

131,425,470

257,400,084

15,424,034

1,620,818

3,647,268

7,849,597

-

28,541,717

1,758,543

7,056,496

8,815,039

4,750,887

1,358,824

6,109,711

8,096,854

40,920,040

49,016,894

116

PLASTICS LTD.

Note 23Revenue from Operations (Refer Note No. 47)Sale of ProductsExportLocal

Other Operating RevenuesSale of ScrapSubsidy / Government Grants (Refer Note No. 48)OthersTotal

Note 24Other IncomeInterest IncomeOn Banks Fixed DepositsOn Inter Corporate DepositsOn Others

Other Non-Operating Income Profit on Sale of Property, Plant and Equipment (Net)Exchange Gain / (Loss)Others

Total

Note 25Cost of Material ConsumedOpening Stock of Raw MaterialAdd : Purchases

Less : Closing Stock of Raw MaterialTotal

Note 26Changes in inventories of Finished Goods, Stock in Trade and Work in ProgressClosing StockFinished GoodsSemi Finished GoodsOpening StockFinished GoodsSemi Finished GoodsTotal

Note 27Employee Benets ExpensesSalaries, Wages and BonusLeave SalaryContribution to Provident and other funds (Refer Note No.33)Gratuity ExpensesStaff WelfareTotal


₹


₹


237,940,458 1,028,864,707 1,266,805,165

618,822 1,030,887 2,134,987

1,270,589,861

639,563 350,958 262,196

1,252,717

884,450 -

34,000 918,450

2,171,167

90,834,807 747,816,340 838,651,147

91,116,706 747,534,441

162,556,077 15,410,504

162,166,302 9,833,073

(5,967,207)

134,456,723 6,455,443 4,342,473 2,177,649 5,823,717

153,256,005

230,680,852 1,090,183,833 1,320,864,685

691,968 4,244,762 3,373,375

1,329,174,790

630,714 1,309,119 1,020,102 2,959,935

1,114,472 5,775,401 2,438,546 9,328,419

12,288,354

120,556,062 816,070,197 936,626,259

90,834,807 845,791,452

162,166,302 9,833,073

127,551,327 2,893,968

(41,554,080)

122,163,477 5,796,494 4,284,243 2,085,647 6,363,115

140,692,976

117

Note 28

Finance Costs

Interest on Borrowings

Other Borrowing Costs (Finance Charges)

Interest on Lease Liability (Refer Note No. 43)

Total

Note 29

Other Expenses

Manufacturing Expenses

Labour Charges

Consumption of Stores, Spare Parts and Components, Packing Materials

Power and Fuel

Repairs to Buildings

Repairs to Machinery

Factory Insurance

Factory Expenses

Other Manufacturing Expenses

Selling and Distribution Expenses

Advertisement Expenses

Brokerage and Commission

Freight, Forward and others

Sales Promotion Expenses

Other Expenses

Professional Fees

Rent

Insurance (Others)

Corporate Social Responsibility Expenses (Refer Note No. 45)

Travelling and Conveyance Expenses

Telephone Expenses

General Expenses

Printing and Stationery

Repairs to Other's

Payment to Statutory Auditors (Refer Note No. 38)

Exchange Loss / (Gain) (Net)

Postage and Telegram

Provision against Interest Receivables

Provision for Doubtful Debts

Bad Debts written off

Sundry Balance written Off

Director's Sitting Fees

Vehicle Expenses

Total


₹


₹


17,023,490

1,336,219

1,348,909

19,708,618

33,575,944

18,521,584

39,068,956

1,189,835

4,398,411

1,520,709

2,379,017

5,849,620

106,504,076

2,328,150

90,000

49,181,048

3,448,327

55,047,525

7,901,606

15,640,292

4,127,465

1,735,000

11,279,758

1,060,606

15,078,249

1,405,892

1,028,578

1,226,972

1,019,522

657,129

1,175,000

8,268,299

3,293,861

1,705,438

427,500

2,197,698

79,228,865

240,780,466

23,487,479

2,009,103

-

25,496,582

30,700,263

19,829,777

37,364,215

2,213,516

3,461,234

585,076

3,014,990

8,023,831

105,192,902

2,486,855

-

51,039,325

3,909,879

57,436,059

6,168,994

25,430,194

2,658,743

1,200,070

9,056,156

1,245,355

11,000,652

2,443,585

858,850

1,419,286

6,629,306

853,862

-

4,595,414

-

-

332,500

2,610,616

7,6503,583

239132,543



Note 30 : Principles of Consolidation:

These Consolidated Financial Statements (CFS) are prepared on the following basis in accordance with Ind AS on “Consolidated Financial Statements” (Ind AS – 110), “Investments in Associates and Joint Ventures” (Ind AS – 28) and “Disclosure of interest in other entities” (Ind AS – 112), specified under Section 133 of the Companies Act, 2013.

(a) Subsidiaries:

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

(b) Non-controlling interest (NCI):

NCI are measured at their proportionate share of the acquiree’s net identifiable assets at the date of acquisition. Changes in the Group’s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

(c) Loss of control:

When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value at the date the control is lost. Any resulting gain or loss is recognized in profit or loss.

(d) Equity accounted investees:

The Group’s interests in equity accounted investees comprise interest in joint venture. A joint venture is an arrangement in which the Group has joint control and has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interest in joint venture is accounted for using equity method. They are initially recognized at cost which includes transaction costs. Subsequent to initial recognition, consolidated financial statements include the Group’s share of profit or loss and OCI of equity accounted investees until the date on which significant influence or joint control ceases.

(e) Transactions eliminated on consolidation:

The reporting date of the Holding Company is different from the reporting date its Subsidiary Company and Joint Venture. The financial statements of the Company and its Subsidiary Company used in consolidation procedure are drawn up to the same reporting date i.e. March 31, 2020. However, the financial statements of Joint Venture used for consolidation are for year ended December 31, 2019. The difference between reporting date of the Company and its Subsidiary Company and Joint Venture is 3 months. The financial statements of the Company and its Subsidiary Company are combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

The Consolidated Financial Statements are comprised of the financial statements of the members of the Group as under:

Notes on Accounts of the financial statements of the Company, its Subsidiary and its interest in Joint Venture are set out in their respective financial statements.

Note 31: Contingent Liabilities (Ind AS 37)

(a) Claims against the Company not acknowledged as : Nil

The Company does not have any pending litigations and proceedings as at March 31, 2020 ( March 31, 2019 – Nil).

Note 32: Capital and other commitments

Estimated amount of Contracts remaining to be executed on capital account, not provided for are (net of advances) ₹ 17,176,677/- (March 31, 2019 ₹ 1,307,337/-).

Note 33: Employee Benets (Ind AS 19)

(A) Dened Benet Plans:

Gratuity:

The gratuity payable to employees is based on the employee's service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company for payment of gratuity.

Inherent Risk on above:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

Name of Related Parties Principal Place ofBusiness


As at March 31, 2020 As at March 31, 2019

Prima Union Plasticos S.A. – Subsidiary

Prima Deelite Plastics S.A.R.L. - Joint Venture

Guatemala

Cameroon

90%

50%

90%

50%

118

PLASTICS LTD.

18,236,014

2,071,797

1,420,585

(1,501,552)

(452,537)

(5,047,787)

14,726,520

16,877,190

1,314,733

(163,709)

2,450,000

(5,047,787)

15,430,427

(14,726,520)

703,907

2,071,797

105,852

2,177,649

(1,501,552)

(452,537)

163,709

(1,790,380)

413,395

4,373,545

6,999,614

19,927,347

15,242,365

1,751,290

1,196,526

81,455

438,412

(474,034)

18,236,014

10,983,050

862,169

18,505

5,487,500

(474,034)

16,877,190

(18,236,014)

(1,358,824)

1,751,290

334,357

2,085,647

81,455

438,412

(18,505)

501,362

4,262,356

4,486,993

6,240,055

25,889,883

ParticularsAs at

March 31, 2020₹


₹Change in Dened Benet Obligation


Adjustment of:


Interest Cost

Actuarial (gains)/losses recognised in Other Comprehensive Income:

- Change in Financial Assumptions

- Experience Changes

Benefits Paid


Change in Fair value of assets


Expected Return on Plan Assets

Re-measurements due to:

Interest on Plan Assets

Contribution by the employer

Benefits Paid


Net Asset / (Liability) recognized in the Balance Sheet

Present value of the funded defined benefit obligation at the end of the period

Fair Value of Plan Assets

Net Asset / (Liability) in the Balance Sheet

Expenses recognized in the Statement of Prot & Loss


Interest Cost

Amount charged to the Statement of Prot and Loss

Re-measurements recognized in Other Comprehensive Income(OCI):

Changes in Financial Assumptions

Experience Adjustments

Actual return on Plan assets less interest on plan assets

Loss/ (Gain) recognized in Other Comprehensive Income(OCI)

Maturity Prole of Dened Benet Obligation:

Within the next 12 months



10 Years and above

Sensitivity analysis for signicant assumptions:*

Statement of Change in the Present Value of Projected Benet Obligation



119

*The Sensitivity Analysis have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses

Discount rate:

The Discount rate is based on the prevailing market rates of Indian government securities for the estimated term of obligation.

Salary Escalation Rate:

The estimates of future salary are considered taking into account inflation, seniority, promotion and other relevant factors.

Asset Liability matching strategy

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to an Insurance Company. The Insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company’s philosophy is to fund these benefits based on its own liquidity and the level of under funding of the plan.

The Company’s expected contribution during next year is ₹ 1,282,519/- (March 31, 2019 ₹ 3,430,621/-)

(B) Dened Contribution Plans:

Amount recognized as an expense and included in Note 28 under the head “Contribution to Provident and other Funds” of Statement of Profit and Loss is ₹ 4,342,473/- (March 31,2019 ₹ 4,284,243/-)

(1,232,817)

1,432,119

1,444,081

(1,263,817)

148,154

(173,957)

100%

6.82%

6.82%

2.00%

Indian Assured Lives

Mortality (2006-08)

5.00%

60 Years

9 Years

(1,266,532)

1,474,733

1,471,636

(1,286,357)

45,324

(56,036)

100%

7.79%

7.79%

2.00%

Indian Assured Lives

Mortality (2006-08

7.00%

60 Years

9 Years

ParticularsAs at

March 31, 2020₹


₹Increase/(Decrease) on present value of dened benets obligation at the

end of the year

1% increase in discount rate

1% decrease in discount rate

1% increase in salary escalation rate

1% decrease in salary escalation rate

1% increase in employee turnover rate

1% decrease in employee turnover rate

The major categories of plan assets as a percentage of total plan:

Insurer Managed Funds

Actuarial Assumptions:

Discount Rate (p.a.)

Expected Return on Plan Assets (p.a.)

Turnover Rate

Mortality tables

Salary Escalation Rate (p.a.)

Retirement age

Weighted Average duration of Dened benet obligation


120

PLASTICS LTD.


Note 34: Segment Reporting (Ind AS 108):

(A) Basis for segmentation

The Company's Managing Director, the Chief Operating Decision Maker for the Company, periodically reviews the internal management reports and evaluates performance/allocates resources based on the analysis of various performance indicators relating to the segment.

The Group is exclusively engaged in the business of plastic articles and related products. As per Ind AS 108 “Operating Segments”, specified under Section 133 of the Companies Act, 2013, there are no reportable segments applicable to the Group.

The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below:

Note 35: Related Party Disclosures (Ind AS 24):

(A) List of Related Parties where control exists:

(B) Other Related Parties with whom there were transactions during the year:

ParticularsRevenue from External

Customers


₹


₹

As atMarch 31, 2020

₹

As atMarch 31, 2019

₹

India (Country of Domicile)

Others

Total

898,176,813

372,413,048

1,270,589,861

1,011,063,585

318,111,205

1,329,174,790

260,399,187

35,436,306

295,835,493

253,433,141

48,211,160

301,644,301

Non-Current Assets

Name of Related PartiesPrincipal Place

of Business As at March 31, 2020 As at March 31, 2019

Prima Deelite Plastics S.A.R.L. - Joint Venture Cameroon 50% 50%


Name of Related Parties Nature of Relationship

Shri Bhaskar M. Parekh - Executive Chairman

Shri Dilip M. Parekh - Managing Director

Smt. Hina V. Mehta - Non Executive Director

Shri Mulchand S. Chheda - Independent Director (till September 30, 2019)

Shri Krishnakant V. Chitalia - Independent Director

Shri Rasiklal M. Doshi - Independent Director

Shri Snehal N. Muzoomdar- Independent Director (w.e.f. January 29, 2019)

Shri Shailesh Shah - Independent Director (w.e.f. November 13, 2019)

Shri Dharmesh R. Sachade - Chief Financial Officer (w.e.f. November 03,2018)

Shri Manoj O. Toshniwal - Chief Financial Officer (till November 02,2018)

Ms. Nidhi Shah - Company Secretary (till November 30, 2019)

Ms. Ankita Agarwal - Company Secretary (w.e.f. February 07, 2020)

Shri Pratik B. Parekh

Shri Paras B. Parekh

Ms. Shreya D. Parekh

Sanya Plastics

Classic Plastics














Relative of KMP

Relative of KMP

Relative of KMP





121


(C) The following transactions were carried out with the related parties in the ordinary course of business:

(D) Outstanding balances

(E) Compensation of Key Management Personnel of the Company:

Nature of Transaction Year ended

March 31, 2020₹


₹

2,937,651

737,210

4,377,318

8,052,179

482,682

-

250,924

15,362,572

5,661,666

21,024,238

3,157,974

774,080

4,705,629

8,637,683

-

33,630

441,270

15,901,029

6,021,643

21,922,672

Rent Paid:

Classic Plastics

Sanya Plastics


Total

Sale of Raw Material :

Sanya Plastics

Purchase of Raw Material :

Sanya Plastics

Reimbursement of Expenses:


Services received from:


Relative of Key Management Personnel

Total

Nature of TransactionAs at

March 31, 2020₹


₹

125,000

1,000,000

1,500,000

151,000

-

1,000,000

1,500,000

151,000

Loans and Advances


Rent Deposits

Classic Plastics


Sanya Plastics

Nature of Transaction Year ended

March 31, 2020₹


₹15,362,57215,901,029Short - Term Employee Benets

The remuneration paid to key managerial personnel excludes gratuity and compensated absences as the provision is computed for the Company as a whole and separate figures are not available.

Based on the recommendation of the Nomination, Remuneration and Compensation Committee, all decisions relating to the remuneration of the Directors are taken by the Board of Directors of the Company, in accordance with shareholder's approval, wherever necessary.

122

PLASTICS LTD.


Terms and Conditions of transactions with Related Parties:

The transactions with the related parties are made in the normal course of business and on the terms equivalent to those that prevails in arm's length transactions. Outstanding balances at the year-end are unsecured.

For the year ended March 31, 2020, the Company has not recorded any impairment of receivables relating to amounts owned by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related parties operate.

Note 36: Income Taxes (Ind AS 12):

(A)Reconciliation of Effective Tax Rate:


March 31, 2020%


%

27.82

2.72

(9.05)

(0.81)

(3.55)

-

17.12

27.82

-

-

(3.66)

(0.77)

(10.83)

12.56

Applicable Tax Rate

Effect of MAT

Effect of Tax Paid at a Lower Rate

Effect of Allowances for tax purpose

Others

Effect of Reversal of Opening Deferred Tax Liability for change in income tax

rates (Refer Note 17)

Effective Tax Rate

Note 37: Earnings per Share (EPS) (Ind AS 33):


March 31, 2020₹


₹

94,866,503

11,000,470

8.62

101,082,128

11,000,470

9.19

Basic/Diluted EPS

(i) Net Profit attributable to Equity Shareholders

(ii) Weighted average number of Equity Shares outstanding (Nos.)

Basic Earnings Per Share / Diluted Earnings Per Share (i/ii)

Note 38 : Auditors' Remuneration (excluding GST) and expenses


March 31, 2020₹


₹

1,203,686

35,600

180,000

1,130,822

33,650

62,500

Audit Fees (including Quarterly Limited Review)

Expenses Reimbursed

Fees for Other Services


123

Note 39: Financial Instruments: Disclosure (Ind AS 107):

(A) Classication of Financial Assets and Liabilities (Ind AS 107):

ParticularsAs at

March 31, 2020₹


₹

17,888,196

7,556,475

285,782,062

74,728,308

10,852,390

2,526,071

39,408,969

438,742,471

50,885,222

-

49,016,894

257,400,084

28,541,717

385,843,917

17,167,848

7,272,271

237,206,356

43,668,879

11,841,894

1,112,365

26,168,635

344,438,248

31,098,059

4,895,514

60,798,520

163,392,367

36,840,654

297,025,114

Financial assets at Amortized cost:

Loans - Non-Current

Loans - Current

Trade Receivables


Other Bank Balances

Other Non-Current Financial Assets


Total

Financial liabilities at Amortized Cost:

Borrowings

Other Non Current Financial Liabilities

Trade Payables

Cash Credits/Working Capital Borrowings


Total

Note 40: Financial Risk Management Objectives and Policies (Ind AS 107):

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets include Investments, Loans and Other receivables, Cash and Cash Equivalents and Other Bank Balances that directly derive from its operations.

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

A. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.

The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

(a) Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign currency borrowings, receivable against exports of finished goods, loan to foreign subsidiary, interest receivable on loan to subsidiary and the Company’s net investments in foreign subsidiaries.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures and uses forward contracts, if required, to hedge exposure to foreign current risk. During the year, the Company has entered into forward contract of USD 514,000 to hedge its receivables and payables. Forward contract outstanding as on March 31, 2020 is USD 200,000 against foreign currency borrowings. (March 31, 2019 USD Nil).


124

PLASTICS LTD.

Outstanding Foreign Currency ExposureAs at

March 31, 2020As at

March 31, 2019

194,555

-

1,900,000

304,899

411,003

191,444

366,705

11,951

1,300,000

401,624

-

191,444

Trade Receivables:

USD

EURO

Borrowings:

USD

Trade Payable

USD

Dividend Receivable:

Euro

Investments:

Euro

Foreign currency senastive on unhedged exposure: 1% increase in foreign exchange rate will have the following impact on profit before tax:

Note: If the rate is decreased by 100 bps profit will decrease by an equal amount.

(b) Interest rate risk :Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

*Above exposure in foreign currency is unhedged

Interest rate sensitive for unhedged exposure (impact on increase in 100 bps):

Note: If the rate is decreased by 100 bps profit will increase by an equal amount.Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period



March 31, 2019

(1,463,974)

236,914

(855,569)

9,925

USD

Euro

ParticularsFloating Rate Borrowings

Fixed Rate Borrowings

6,930,498

-

7,638,534

14,569,032

9,182,611

-

15,308,008

24,490,619

100,017,888

98,001,670

-

198,019,558

167,793,251

131,425,470

-

299,218,721

INR

USD*

Quetzals


INR

USD

Quetzals


Total borrowings

106,948,386

98,001,670

7,638,534

212,588,590

176,975,862

131,425,470

15,308,008

323,709,340



March 31, 2019

2,992,1871,980,195INR



125


B. Credit Risk :

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables), and from its investing and financing activities including Deposits with Bank, Security Deposits, Loans to Employees and other financial instruments

(a) Trade Receivables :

Trade receivables are consisting of a large number of customers The Company has credit evaluation policy for each customer and based on the evaluation credit limit of each customer is defined.

Total Trade receivable as on March 31, 2020 ₹ 251,655,402/- (March 31, 2019 ₹ 293,256,466/-).

The Company does not have higher concentration of credit risks to a single customer.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

As per policy, Receivables are classified into different buckets based on the overdue period ranging from 3 months to more than 3 years There are different provisioning rates for each bucket which are ranging from 2% to 100%.

Movement of Allowances for Credit Loss:

(b) Cash and cash Equivalent and Bank Deposit :

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only based on Investment Policy of the Company

(c) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. Senior management of the Company is responsible for liquidity, funding as well as settlement management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities and investments at the reporting date based on contractual undiscounted payments.

ParticularsAs at

March 31, 2020₹


₹

4,957,689

4,595,414

2,078,699

7,474,404

7,474,404

8,268,299

1,294,017

14,448,686

Opening Provision

Add: Provided during the Year

Less: Utilised during the Year

Closing Provision

As at March 31, 2020Upto 1 Year

₹Total

₹

60,798,520

212,588,590

708,532

11,716,162

12,095,693

60,798,520

181,490,531

708,532

11,716,162

6,978,872

-

31,098,059

-

-

5,116,821

-

-

-

-

-

Trade Payables

Borrowings (including current maturities of long term debt)



Lease Liabilities

1 to 5 Years₹

More than5 Years

₹

As at March 31, 2019Upto 1 Year

₹Total

₹

49,016,894

323,709,340

1,620,818

11,496,865

49,016,894

272,824,118

1,620,818

11,496,865

-

50,885,222

-

-

-

-

-

-

Trade Payables

Borrowings (including current maturities of long term debt)



1 to 5 Years₹

More than5 Years

₹

126

PLASTICS LTD.


Note 41: Distribution made and proposed (Ind AS 1):

Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (including Dividend Distribution Tax thereon) as at March 31 of respective year.

Note 42: Capital Management (Ind AS 1):

The Company’s objectives when managing capital are to :

(a) maximise shareholder value and provide benefits to other stakeholders and

(b) maintain an optimal capital structure to reduce the cost of capital.

For the purposes of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves attributable to the equity holders.

The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity.

In addition, the Company has financial covenants relating to the borrowing facilities that it has taken from the lenders like interest coverage service ratio, Debt to EBITDA, etc. which is maintained by the Company.

Note 43: Leases:

(A) As a lessee (Ind AS 116)

(a) The Company has implemented Indian Accounting Standard for Leases (“Ind AS 116”) with effect from April 01, 2019 using the modified retrospective approach, under which the cumulative effect of Initial application is recognized in retained earnings as on April 01, 2019. The effect of initial recognition as per Ind AS 116 is as follows:

ParticularsAs at

March 31, 2020₹


₹

22,000,940

4,479,000

-

-

26,479,940

11,000,470

2,239,500

13,239,970

11,000,470

2,239,500

11,000,470

2,239,500

26,479,940

-

-

-

Cash Dividends on equity shares declared and paid:

Final Dividend for the year ended on March, 2019 ₹ 1/- per share


DDT on Final Dividend

Interim Dividend for the year ended on March, 2020 ₹ 1/- per share

DDT on Interim Dividend

Total Dividend paid

Proposed Dividends on Equity shares:

Proposed Final Dividend for the year ended on March 31, 2020 ₹Nil per share


DDT on Proposed Dividend

Total Dividend Proposed

ParticularsAs at

March 31, 2020As at

March 31, 2019

323,709,340

890,181,304

0.36

212,588,590

968,313,144

0.22

Total Debt (bank and other borrowings) ₹

Total Equity ₹

Debt to Equity (Net)

ParticularsAs on

April 01, 2019₹

12,062,181

10,839,533

340,141

882,507

Lease liability

Right of Use (ROU) asset

Deferred tax assets

Net Impact on Retained Earnings


127


(b) Following are the carrying value of Right of Use Assets for the year ended March 31, 2020:

(C) Impact of adoption of Ind AS 116 for the year ended March 31, 2020 is as follows:

(d) Lease Expenses recognized in Prot and Loss statement not included in the measurement of lease liabilities:

(e) Maturity analysis of lease liabilities– contractual undiscounted cash ows:

(f) The Weighted average incremental borrowing rate of 9.50% p.a has been applied for measuring the lease liability at the date of initial application.

(g) The total cash outflow for leases for year ended March 31, 2020 is ₹ 1,16,95,445/-

ParticularGross Block

₹Accumulated depreciation and amortisation

₹Net Block

₹

As at April 01,

2019

Reclassied on account

of Ind AS 116

AdditionsAs at

March 31, 2020

As at April 01,

2019

Reclassied on account

of Ind AS 116

For the year

As at March 31,

2020

As at March 31,

2020

Leasehold

Land

Leasehold

Building

Total

-

10,839,533

10,839,533

934,331

-

934,331

-

9,497,666

9,497,666

-

20,337,199

20,337,199

-

-

-

32,175

32,175

10,725

10,043,991

10,054,716

42,900

10,043,991

10,086,891

891,431

10,293,208

11,184,639


March 31,2020₹

11,695,445

10,043,991

1,348,909

302,545

Decrease in Other Expenses (Rent Expense) by

Increase in Depreciation by (excludes depreciation on reclassified assets)

Increase in Finance cost by

Net Impact on Prot


March 31,2020₹

15,640,292Expenses relating to short-term leases


March 31,2020₹

6,978,872

5,116,821

-

12,095,693

11,213,310

6,317,796

4,895,514

Less than one year

One to five years

More than five years

Total undiscounted lease liabilities at March 31, 2020

Discounted Lease liabilities included in the statement of financial position at March 31, 2020

Current lease liability

Non-Current lease liability

128

PLASTICS LTD.


(B) As a lessee (Ind AS 17) for year ended March 31, 2019 :

(a) Operating lease payment recognised in the Statement of Profit and Loss amounts to ₹ 28,881,985/- for the year ended March 31, 2019.

(b) General Description of leasing agreements:

- Leased Assets:Land, Godowns, Offices, Flats, Machinery and Others.

- Future Lease rentals are determined on the basis of agreed terms.

- At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing.

- Lease agreements are generally cancellable and are renewable by mutual consent on mutually agreed terms.

Note 44: Micro, Small and Medium Enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) which came into force from October 02, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises.

The above information has been determined to the extent such parties have been identified on the basis of information available with the Company and the same has been relied upon by the auditors.

Note 45: Corporate Social Responsibility

Expenditure incurred on Corporate Social Responsibility activities, included in different heads of expenses in the Statement of Profit and Loss is ₹ 1,735,000/- (March 31, 2019 ₹ 1,200,070/-) including unspent amount of ₹ 435,397/- for the F.Y 2018-19.

The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended March 31, 2020 is ₹ 1,299,603/- (March 31, 2019 ₹ 1,634,500/-) i.e. 2% of average net profits for last three financials years, calculated as per section 198 of the Companies Act, 2013.

ParticularsAs at

March 31, 2020₹

As atMarch 31, 2019

₹

Principal amount:

Interest:

due thereon remaining unpaid to any supplier as at the year end

Amount of interest paid by the Company in terms of section 16 of the Micro, Small and

Medium Enterprises Development Act, 2006 (‘MSMED Act’) , along with the amount of

the payment made to the supplier beyond the appointed day during the accounting year

Amount of interest due and payable for the period of delay in making payment (which

have been paid but beyond the appointed day during the year) but without adding the

interest specified under the MSMED Act

Amount of interest accrued and remaining unpaid at the end of the accounting year

Amount of further interest remaining due and payable even in the succeeding years, until

such date when the interest dues above are actually paid to the small enterprise, for the

purpose of disallowance of a deductible expenditure under section 23 of the MSMED Act

13,482,663

-

-

-

-

-

8,096,854

-

-

-

-

-


129


Note 46: Investment Details

Details of investments made by the Company covered u/s. 186 (4) of the Companies Act 2013 as on March 31, 2020 (including investments made in the previous years):

Note 47 – Revenue (Ind AS 115)

(A) The Company is primarily in the Business of manufacture and sale of Plastic Articles. All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods

(B) Revenue recognised (Advances from Customers):

(C) Reconciliation of revenue as per contract price and as recognised in statement of prot and loss:

Note 48:

Government Grants:

Other Operating Revenues include Incentives against capital investments, under State Investment Promotion Scheme of ₹ 1,030,887/- (March 31, 2019 ₹ 4,224,762/-)

Note 49 :

The Company has a process whereby periodically all the long term contracts (including derivatives contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts has been made in the books of accounts. There are no derivatives contract outstanding as at year end.

Name of the Entity in thegroup

Net Assets i.e. totalassets minus total

liabilities

Share in protor loss

Share in OtherComprehensive

Income (OCI)

Share in TotalComprehensive

Income (TCI)

As % ofconsolidated

net assets

Parent Company

Prima Union Plasticos S.A. -

Subsidary

Non Controlling Interest in

Subsidairy

Joint Venture

Total

Amount₹

Amount₹

Amount₹

Amount₹

As % ofconsolidatedprot / loss

As % ofconsolidated

OCI

As % ofconsolidated

TCI

63.29%

4.51%

0.50%

31.70%

100.00%

612,885,441

43,661,655

4,853,287

306,912,761

968,313,144

16.49%

26.27%

2.63%

54.61%

100.00%

17,122,332

27,270,808

2,727,081

56,688,988

103,809,209

92.66%

0.00%

7.24%

0.00%

92.66%

4,499,367

-

356,342

-

4,855,709

19.90%

25.10%

2.84%

52.17%

100%

21,621,699

27,270,808

3,083,423

56,688,988

108,664,918


March 31, 2020₹


₹

5,814,421

5,409,608

7,056,496

6,512,108

Opening Contract liability

Less : Recognised as revenue during the year


March 31, 2020₹


₹

1,352,071,696

(31,207,011)

1,320,864,685

1,290,729,123

(23,923,958)

1,266,805,165

Revenue as per Contract price

Less: Discounts and incentives

Revenue as per statement of profit and loss

130

PLASTICS LTD.


Note 50 :

COVID-19 (Global Pandemic)

As per the directives of both the Central and State Governments in the wake of COVID-19 pandemic, the Company had suspended operations across various locations. The Company has been taking various precautionary measures to protect employees and their families from COVID-19.

The Company has carried out a detailed assessment of the recoverability of the carrying values of all its assets including trade receivables, inventory and loans as at the Balance Sheet date. Based on the assessment of the Company, an adequate provision for doubtful debts has been made in the Consolidated Financial Statements, after factoring an anticipated reduction in collection efficiency. The Company expects to recover the net carrying amount of all its assets including inventory, receivables and loans in the ordinary course of business based on information available on current economic conditions. The Company is continuously monitoring any material changes in future economic conditions.

Operations have been resumed in a phased manner at various locations from April 20, 2020, taking cognizance of the Governments’ views around resuming manufacturing activities with controlled entry and exit facilities, and after obtaining necessary permissions in this behalf.

The eventual outcome of impact of the global health pandemic may be different from those estimated as on the date of approval of these financial statements.

Note 51 :

Previous year figures have been regrouped / reclassified wherever necessary to correspond with current year classification / disclosure.









MumbaiJune 29,2020


131

132

PLASTICS LTD.

https://www.firstcry.com/prima/0/0/1005871?q=as_prima&asid=44255

https://www.pepperfry.com/brands/prima.html?cat=3

EXPANDING ON DIGITAL PLATFORMGoing with the trend of e-commerce, Prima is now available on two most

widely used platform: Firstcry & Pepperfry. Prima has received trust of

thousands of new customers during this lockdown period through this

digital commerce platform which helped further to cater to this growing

market and to take the Company to newer heights in the future

GLOBAL MANUFACTURING FACILITIES

INDIAN NETWORKS:

CORPORATE OFFICE

Mumbai

REGISTERED OFFICE

Daman

BRANCH OFFICE

Kolkata & Hyderabad

GuatemalaCentral America (1)


CameroonWest Africa (2)

PLANTS

Daman (2), Kerala,

Ongole (AP)

DEPOTS

Coimbatore, Hubli, Jammu,

Jaipur, Kanpur, Karnal,

Indore (MP), Cuttak (Odisha),

Hyderabad (Telangana),

Zirakpur (Punjab), & Kolkata

Corporate Office:

41, National House, Saki Vihar Road,

Andheri (East), Mumbai-400 072. INDIA

Tel.: +91 22 2857 4765 / 8 / 9

Fax: +91 22 2857 2859

Email: [email protected]

Website: www.primaplastics.com

Scan this QR Code on your

smart device to visit Prima Website

Plastics Ltd.

prima plastic annual report - 19-20 inner page...14. the securities and exchange board of india...

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